HB320 Alabama 2013 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Co-Sponsors

Laura HallJames E. BuskeyLawrence McAdoryMerika ColemanJamie Ison

Session

Regular Session 2013

Title

Deferred presentment services, define principal balance, common database, limits on interest that can be charged, violations, Secs. 5-18A-2, 5-18A-12, 5-18A-13, 5-18A-16 am'd.

Description

Under existing law, deferred presentment transactions, commonly referred to as payday loans, are regulated by the State Banking Department pursuant to the Deferred Presentment Services Act.

This bill would add to this act the term "Principal Balance" and define the term.

This bill would provide that a person who is not exempted from the Deferred Presentment Services Act would be subject to the provisions of this act.

This bill would provide that any loan contract entered into in violation of the act would be void.

This bill would impose limits on the amount of interest that could be charged for a loan.

This bill would prohibit a licensee from extending a loan to a customer who has an outstanding deferred presentment transaction with a value of $500 or more, who has six or more deferred presentment transactions from all licensees in any 12-month period, an extended repayment with a licensee until 14 days after the plan is paid in full, or the customer or their spouse or dependent is a member of the military.

This bill would extend the time in which payment of a check may be deferred.

This bill would provide that a licensee may not use or threaten force or violence against a customer and limit the threatening of criminal prosecution against a customer.

This bill would provide that the period of the deferred presentment transaction would not begin until the customer receives the funds from the licensee.

This bill would require licensees to use a database designated by the supervisor to ensure that a customer does not have any deferred presentment transaction over $500.

This bill would require each licensee to report within a specified time certain information to the supervisor.

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Subjects

Deferred Presentment Services