HB145 Alabama 2014 Session

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

To amend Sections 5-18A-2, 5-18A-12, 5-18A-13, and 5-18A-16 of the Code of Alabama 1975, relating to deferred presentment transactions; to add the term "Principal Balance" and define the term; to provide that a person who is not exempted from the Deferred Presentment Services Act would be subject to the provisions of this act; to provide that any loan contract entered into in violation of the act would be void; to impose limits on the amount of interest that could be charged for a loan; to 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 ays after the plan is paid in full, or the customer or their spouse or dependent is a member of the military; to extend the time in which payment of a check may be deferred; to 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; to provide that the period of the deferred presentment transaction would not begin until the customer receives the funds from the licensee; to require licensees to use a database designated by the supervisor to ensure that a customer does not have any deferred presentment transaction over $500; and to require each licensee to report with a specified time certain information to the supervisor.