SB335 Alabama 2015 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2015

Title

Payday loans, transactions to be repayed over a six-month period, prohibit extensions, Secs. 5-18A-2, 5-18A-12, 5-18A-13 am'd.

Summary

SB335 would regulate payday loans by allowing six-month repayment, banning extensions beyond that term, reducing the extended repayment option to three months, and adding reporting and fee-disclosure requirements for licensees.

What This Bill Does

Borrowers could repay a deferred presentment loan over six months. The bill would prohibit extending a deferred presentment transaction beyond its terms and would reduce the extended repayment option to three monthly installments if the balance isn’t paid after the initial period and one rollover. Licensees could charge a bad-check fee for each returned check. Licensees would have to report certain information to the State Banking Department, which would publish aggregated data for the public, and they must provide clear disclosures of all fees to borrowers.

Who It Affects

• Borrowers/consumers who use deferred presentment payday loans, who would be able to repay over six months and would encounter new fees and disclosure requirements.
• Licensed deferred presentment providers (payday loan lenders), who would face new repayment limits, extension restrictions, reporting obligations, and fee-disclosure requirements.

Key Provisions

• Allows repayment of a deferred presentment transaction over six months.
• Prohibits extending (rolling over) a deferred presentment transaction beyond its term.
• Reduces the extended repayment option to three equal monthly installments if the balance cannot be repaid after the initial period and one rollover.
• Allows licensees to charge a bad-check fee for each returned check.
• Requires licensees to report specified information to the State Banking Department; the department must publish aggregated data for public viewing.
• Requires clear, written disclosures of all fees and terms to customers; includes posted fee schedules and required notices regarding potential high costs.

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

Subjects

Payday Loans