HB297 Alabama 2016 Session

Summary

Primary Sponsor

Danny Garrett Representative

Republican

Session

Regular Session 2016

Title

Banks and Banking, deferred presentment services further regulated, Secs. 5-18A-3, 5-18A-12, 5-18A-13 am'd.

Description

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).

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Subjects

Banks and Banking