This bill would regulate the providing of money or credit to a consumer pursuant to an agreement under which the consumer is not prohibited from using the money or credit for a purpose other than prosecuting a dispute, and under which repayment of the money or credit is conditioned upon the consumer's recovery of money in a dispute or where recourse against the consumer by the person providing the money or credit is limited exclusively or primarily to the amount recovered by the consumer in a dispute.
This bill would define provider of money or credit as a consumer lawsuit lender.
This bill would provide that each provision of money or credit would be deemed to be a consumer loan and the maximum finance charge on the loan would be as provided in this bill, regardless of the amount of the loan or credit provided.
This bill would require each consumer lawsuit lender to obtain a license under Section 5-19-22 of the Code of Alabama 1975.
This bill would provide that the lender would be subject to Sections 5-19-16, 5-19-19, 5-19-23, 5-19-24, 5-19-25, and 5-19-26, Code of Alabama 1975.
This bill would allow the Superintendent of Banks of the State Banking Department to issue regulations and interpretations under the act.
Pending third reading on day 25 Favorable from Judiciary
Read for the second time and placed on the calendar
Read for the first time and referred to the Senate committee on Judiciary
Motion to Read a Third Time and Pass adopted Roll Call 560
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Financial Services
Source: Alabama Legislature