HB297 Alabama 2016 Session

Existing law regulates deferred presentment services

This bill would allow the State Banking Department to require an applicant for a license to engage in deferred presentment services to apply through the Nationwide Multistate Licensing System and Registry and would require a license for each location at which deferred presentment loans are made

This bill would require a licensee who offers deferred presentment services to offer an extended repayment option prior to the commencement of a civil action; would limit the fee that could be collected on a check returned for insufficient funds; would provide for when the period of the deferred presentment transaction begins and eliminate any additional charge related to the payment of the proceeds of any deferred presentment transaction; and would specify that a licensee must use the statewide database to ensure that a customer does not have an outstanding deferred presentment transaction in excess of five hundred dollars ($500)

To amend Sections 5-18A-3, 5-18A-12, and 5-18A-13 of the Code of Alabama 1975, relating to deferred presentment services; to allow the State Banking Department to require an applicant for a license to engage in deferred presentment services to apply through the Nationwide Multistate Licensing System and Registry and require a license for each location where deferred presentment loans are offered; to require a licensee who offers deferred presentment services to offers an extended repayment option prior to the commencement of a civil action; to limit the fee that could be collected on a check returned for insufficient funds; to provide for when the period of the deferred presentment transaction begins and eliminate any additional charge related to the payment of the proceeds of any deferred presentment transaction; and to specify that a licensee must use the statewide database to ensure that a customer does not have an outstanding deferred presentment transaction in excess of five hundred dollars ($500).