HB160 Alabama 2015 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Chris PringleRepresentative
Republican
Session: Regular Session 2015
Title: Consumer, regulate the lending of money, provide criminal penalties
Summary: HB160 creates the Alabama Consumer Lawsuit Lending Act to regulate lenders who provide money or credit that is repaid from a consumer's dispute recovery, with licensing, a cap on finance charges, and penalties for violations.
What This Bill Does
It defines key terms, requires consumer lawsuit lenders to be licensed, sets a maximum finance charge of 10 dollars per 100 dollars of principal per year, and lets the State Superintendent of Banks issue regulations. It also requires finance charges to be charged separately from principal and gives consumers a five-business-day right to cancel funding. It provides remedies and penalties for willful violations and brings licensed lenders under related banking laws.

Who It Affects
Consumers who receive money or credit from a consumer lawsuit lender; their repayments would depend on dispute outcomes, and they gain a 5-day rescission window and a finance-charge cap.
Consumer lawsuit lenders operating in Alabama; they must obtain a license, follow banking laws, and could face penalties for violations.
The State Banking Department and its Superintendent; they would regulate, issue rules, interpretations, and enforce the act.

Key Provisions
Defines terms like consumer, consumer lawsuit lender, consumer lawsuit lending, dispute, and finance charge; each funded amount is treated as a loan.
Finance charge is capped at 10 dollars per 100 dollars of principal per year, regardless of loan size or structure.
Lenders must be licensed under Section 5-19-22 and are subject to related sections (5-19-16, 5-19-19, 5-19-23 to 5-19-26, 5-19-29).
Superintendent of Banks can issue regulations and interpretations; enforcement procedures follow the banking code.
Consumer funding agreements must include a bold right-of-rescission notice; consumers may cancel within five business days by returning funds.
Act becomes effective in three months; lenders first required to be licensed by September 30, 2015, with a prorated license fee of $125 per office.
Note about local government funds: the act interacts with Amendment 621 but is exempted from local 2/3-vote requirements under specified exceptions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Consumer