SB381 Alabama 2014 Session

Summary

Primary Sponsor

Scott Beason

Republican

Session

Regular Session 2014

Title

Title loan business, licensure and regulation of, charges concerning title loans, definitions, penalties, Alabama Title Loan Act, Secs. 5-18A-3, 5-18A-12, 5-18A-13 am'd.

Description

This bill would further license and regulate the title loan business.

This bill would provide definitions.

This bill would require licensure of title loan lenders and offices.

This bill would provide for charges, interest, and fees concerning title loans.

This bill would provide that a person who is 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 this act would be void.

This bill would impose limits on the amounts 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 five hundred dollars 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 spouse or dependent of the customer is a member of the military.

This bill would extend the time in which payment of a check may be deferred and 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 a supervisor to ensure that a customer does not have any deferred presentment transactions over five hundred dollars.

This bill would require each licensee to report within a specified time certain information to the supervisor.

This bill would license and regulate the title loan business.

This bill would require licensure of title loan lenders and offices and would provide for charges, interest, and fees concerning title loans.

This bill would provide for fines, penalties, and enforcement for violations.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

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Subjects

Title Loan Businesses