HB717 Alabama 2012 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2012

Title

Alabama Consumer Credit Act, exemption from license fee removed for certain individuals, Sec. 5-19-22 am'd

Summary

HB717 removes the license-fee exemption for Alabama Consumer Credit Act licensees, so they would have to pay licensing fees and follow the act’s licensing rules.

What This Bill Does

It repeals the exemption that allowed licensees under the Alabama Consumer Credit Act to avoid Small Loan Act license fees. It would require those licensees to obtain a license for each Alabama location (or the records location if no Alabama location exists) and to pay a $100 investigation fee plus a $500 annual license fee per office. It sets financial requirements (assets of at least $25,000) and can require a surety bond in place of assets for certain mortgage-related activities, with additional licensing provisions for residential mortgage loans through the Nationwide Mortgage Licensing System. Banks and certain other financial institutions remain exempt from licensing, and the act becomes effective on the first day of the third month after passage.

Who It Affects

• Creditors licensed under the Alabama Consumer Credit Act will now need to obtain licenses for Alabama locations and pay the associated fees.
• Banks, trust companies, savings institutions, credit unions, and federally constituted agencies remain exempt from licensing under this act.
• Insurance companies and their subsidiaries/affiliates that do not make loans or take assignments may obtain a license for the location where records are kept in lieu of per-location licensing.

Key Provisions

• Repeals the exemption for payment of license fees under the Small Loan Act for those licensed under the Alabama Consumer Credit Act.
• Requires license for each Alabama location (or the records location if no Alabama location) and imposes a $100 investigation fee and a $500 annual license fee per office.
• Sets financial and bonding requirements (assets of at least $25,000, with a surety bond option in certain cases) and allows use of the Nationwide Mortgage Licensing System for residential mortgage loan activities.
• Keeps banks and certain other financial institutions exempt from licensing; outlines license terms, nontransferability, delinquency penalties, and fee handling; effective date is the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Credit