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AL SB284
Bill
AI Summary
SB284 Summary
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Sets minimum term of 6 months for small loans using alternative rate of charge and prohibits lenders from collecting additional acquisition fees if loan is refinanced within first 6 months of original contract.
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Limits borrowers to maximum of 4 deferred presentment transactions per 12-month period and prohibits rollovers within 7 days of prior transaction payoff.
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Establishes fixed 30-day term for all deferred presentment transactions with one automatic 3-month extension if balance remains unpaid, requiring 3 equal monthly installment payments at no more than 3% per month during extension.
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Caps interest rate on loans exceeding $2,000 at 60% annualized percentage rate as defined by federal regulation.
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Prohibits pawn transactions involving titled personal property and authorizes State Banking Department to conduct licensing through Nationwide Multistate Licensing System and Registry; effective August 1, 2017.
Legislative Description
Banking, loans and consumer credit transactions, small loans, acquisition charge prohibited on refinances within first six months, deferred presentment transaction, term set at 30 days, total transactions limited, collection activity limited, repayment plan for certain transactions set at three months, interest on loan over $2,000 limited, Secs. 5-18-15, 5-18A-3, 5-18A-12, 5-18A-13, 8-8-5 am'd.
Banking Department
Last Action
Indefinitely Postponed
5/17/2017