This bill would regulate the providing of money or credit to a consumer pursuant to an agreement under which the consumer is not prohibited from using the money or credit for a purpose other than prosecuting a dispute, and under which 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 exclusively or primarily to the amount recovered by the consumer in a dispute.
This bill would define provider of money or credit as a consumer lawsuit lender.
This bill would provide that each provision of money or credit would be deemed to be a consumer loan and the maximum finance charge on the loan would be as provided in this bill, regardless of the amount of the loan or credit provided.
This bill would require each consumer lawsuit lender to obtain a license under Section 5-19-22 of the Code of Alabama 1975.
This bill would provide that the lender would be subject to Sections 5-19-16, 5-19-19, 5-19-23, 5-19-24, 5-19-25, and 5-19-26, Code of Alabama 1975.
This bill would allow the Superintendent of Banks of the State Banking Department to issue regulations and interpretations under the act.
This bill would provide that criminal penalties be provided for willful violation of the maximum finance charge provision or the requirement that the consumer lawsuit lender must obtain a license.
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.
Further Consideration
Bussman motion to Carry Over to the Call of the Chair adopted Voice Vote
Third Reading Carried Over to Call of the Chair
Motion to Carry Over to the Call of the Chair adopted Voice Vote
Third Reading Carried Over to Call of the Chair
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Banking and Insurance
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 487
Motion to Adopt adopted Roll Call 486
Hall Amendment Offered
Motion to Adopt adopted Roll Call 485
Financial Services first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and
Read for the first time and referred to the House of Representatives committee on Financial Services
Source: Alabama Legislature