HB335 Summary

• Amends Alabama Code Section 5-18-15 to authorize licensees under the small loan chapter to collect a closing fee on loans under $1,500 made under the alternative rate structure.

• Closing fee capped at the lesser of 4 percent of the loan amount or $50, and may be paid from loan proceeds and financed by the licensee.

• Upon prepayment in full, closing fees are subject to refund provisions, but licensees may retain up to $25 of the fee.

• Applies only to loans made under the alternative rate structure in subsection (m)(1), which includes acquisition charges and installment account handling charges with specific 3-18 month repayment terms.

• Effective immediately upon passage and gubernatorial approval.