HB587 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, Secs. 5-18A-2, 5-18A-12, 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 allow a customer to repay a deferred presentment transaction over a six month period</p><p class="bill_description"> This bill would forbid the extension of a deferred presentment transaction</p><p class="bill_description"> This bill would decrease the extended repayment option from four months to three months</p><p class="bill_description"> This bill would allow a licensee to collect a bad check fee for each bad check presented</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 and the supervisor to publish the aggregated data to the public</p><p class="bill_entitled_an_act"> To amend Sections 5-18A-2, 5-18A-12, and 5-18A-13 of the Code of Alabama 1975, relating to deferred presentment transactions; to allow a customer to repay a deferred presentment transaction over a six month period; to forbid the extension of a deferred presentment transaction; to decrease the extended repayment option from four months to three months; to allow licensees to collect a bad check fee for each bad check presented; to require licensees to use a database designated by the supervisor; require each licensee to report within a specified time certain information to the supervisor and the supervisor to publish the aggregated data to the public. </p>

Subjects

Deferred Presentment Services