SB530 Alabama 2012 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Session

Regular Session 2012

Title

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

Summary

This bill ends the exemption that allowed Alabama Consumer Credit Act licensees to skip the Small Loan Act license fee, so they must pay the license fee.

What This Bill Does

If approved, creditors licensed under the Alabama Consumer Credit Act would need to obtain a Small Loan Act license for each Alabama location where they operate or where they keep Alabama loan records, and they would pay the annual license fee of $500 per location plus a $100 investigation fee. The license process would continue to require the standard background checks and financial qualifications. The license must be renewed annually with related penalties for late payment, and the act becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• Creditors licensed under the Alabama Consumer Credit Act that operate in Alabama will now have to obtain a Small Loan Act license for each location and pay $500 per location per year plus a $100 investigation fee; they must meet ongoing licensing requirements.
• Banks, trust companies, savings institutions, credit unions, and other entities that are already exempt from Small Loan Act licensing would continue to be exempt and are not changed by this bill.

Key Provisions

• Amends Section 5-19-22 to remove the exemption from paying license fees under the Alabama Small Loan Act for licensees also licensed under the Alabama Consumer Credit Act.
• Keeps the existing licensing framework: license is required for each Alabama location or for the records location if no Alabama location; annual fee of $500 per location; $100 investigation fee; license must be issued only after financial responsibility and fitness are shown; penalties apply for delinquency; fees go into the state supervision fund.
• If a licensee has no Alabama location, the license is for the location where Alabama loan records are maintained.
• Effective date: the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Consumer Credit