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

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 allow a customer to repay a deferred presentment transaction over a six month period.

This bill would forbid the extension of a deferred presentment transaction.

This bill would decrease the extended repayment option from four months to three months.

This bill would allow a licensee to collect a bad check fee for each bad check presented.

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 and the supervisor to publish the aggregated data to the public.

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.

Subjects

Deferred Presentment Services