HB145 Alabama 2014 Session

Sponsors

Session

Regular Session 2014

Title

Deferred presentment transactions, customer repayment period revised, extensions prohibited, collection of a bad check fee under certain conditions, use of database by licensees required, Sec. 5-18A-13 am'd.

Description

<p class="bill_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</p><p class="bill_description"> This bill would add to this act the term "Principal Balance" and define the term</p><p class="bill_description"> 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</p><p class="bill_description"> This bill would provide that any loan contract entered into in violation of the act would be void</p><p class="bill_description"> This bill would impose limits on the amount of interest that could be charged for a loan</p><p class="bill_description"> 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</p><p class="bill_description"> This bill would extend the time in which payment of a check may be deferred</p><p class="bill_description"> 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</p><p class="bill_description"> This bill would provide that the period of the deferred presentment transaction would not begin until the customer receives the funds from the licensee</p><p class="bill_description"> 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</p><p class="bill_description"> This bill would require each licensee to report within a specified time certain information to the supervisor</p><p class="bill_entitled_an_act"> 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. </p>

Subjects

Deferred Presentment Services