HB417 Alabama 2015 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2015

Title

Deferred Presentment Services Act, amended to require licenses to use a database to ensure that a customer does not have any deferred presentment transaction over $500, Sec. 5-18A-13 am'd.

Summary

HB417 would require payday lenders to use a real-time database to ensure customers do not have more than $500 in deferred presentment loans at once and to report data for public aggregation.

What This Bill Does

It bars licensees from approving a new deferred presentment loan for a customer who already has more than $500 outstanding. Licensees must use a designated database to verify the customer's outstanding balances, with a common database implemented for real-time access by both providers and the supervisor. The supervisor will publish an annual aggregated analysis of the reported data, and licensees may incur a per-transaction data fee (not to exceed 75 cents) while borrower costs stay within existing maximums. The act becomes effective January 1, 2016 and requires annual reporting by licensees.

Who It Affects

• Deferred presentment licensees (payday loan providers) in Alabama: must integrate the database, verify customers' outstanding balances before issuing new loans, potentially pay per-transaction data fees, and file annual reports.
• Customers of deferred presentment services (borrowers): may not have more than $500 outstanding at any time, and will see increased disclosures and public data about the industry.

Key Provisions

• Cap on outstanding loans: a licensee may not enter into a deferred presentment transaction for a customer with more than $500 outstanding.
• Database requirement: licensees must use a designated third-party or common database to verify that a customer does not have more than $500 outstanding.
• Real-time unified database: the supervisor will implement a real-time database accessible by licensees and the supervisor; a data submission fee may be charged not to exceed $0.75 per transaction.
• Annual reporting: each licensee must file sworn annual reports with the supervisor detailing business operations for the prior year.
• Public aggregation: the supervisor will publish annually an aggregated analysis of the reported data on deferred presentment services.

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

Subjects

Deferred Presentment Services