AL SB261

Establishes the "Alabama Consumer Lawsuit Lending Act" to regulate consumer lawsuit lenders and lending agreements where lenders provide money or credit based on a consumer's potential recovery in a legal dispute.

Requires consumer lawsuit lenders to obtain a license from the State Banking Department after December 31, 2017, regardless of the number of loans made, with consumer lawsuit lenders classified as creditors under Chapter 19 of Title 5 of the Alabama Code.

Caps the maximum finance charge at $10 per $100 of principal loan amount per year, applying to all consumer lawsuit lending agreements regardless of loan amount.

Makes certain provisions of Chapter 19 of Title 5 of the Alabama Code (Sections 5-19-16, 5-19-19, 5-19-23 to 5-19-25, and 5-19-29) applicable to consumer lawsuit lenders and lending agreements.

Authorizes the Superintendent of Banks to promulgate rules and issue interpretations necessary for enforcement of the act, with procedures for adopting and contesting rules governed by Section 5-19-21 of the Alabama Code.