SB231 Alabama 2014 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2014

Title

Consumer, regulate the lending of money, Sec. 6-8-120 added; Secs. 5-19-1, 5-19-3, 5-19-16 am'd.

Description

This bill would regulate the lending of money or the providing of credit to a consumer pursuant to an agreement under which the consumer may use the money or credit for a purpose other than prosecuting a dispute by the consumer, where repayment of the money or credit is conditioned upon the consumer's recovery of money in a dispute or where recourse against the consumer by the person providing the money or credit is limited primarily to the amount recovered by the consumer in a dispute.

The bill would provide that the person providing the money or credit would be defined to be a "consumer lawsuit lender" under the Alabama Mini-Code, Code of Alabama 1975, Chapter 19 of Title 5, and each provision of money or credit would be deemed to be a consumer loan that is subject to a certain monetary limitation on the amount of finance charge applicable to certain loans. This bill would provide that the terms of a consumer lawsuit lending agreement that are not in compliance with the requirements of this bill would be deemed to be unconscionable.

This bill would provide that in any adjudication or arbitration of a dispute which is the subject of a consumer lawsuit lending agreement, all documents that the consumer has provided to the consumer lawsuit lender and a copy of the consumer lawsuit lending agreement would be required to be filed with the court or other tribunal and served on the opposing party without requirement that the opposing party must request them.

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Subjects

Consumer