SB330 Alabama 2016 Session

Under existing law, lenders of $1,000 or less are licensed and regulated under the Alabama Small Loan Act.

This bill would authorize non-bank lenders to issue short-term unsecured loans, known as flex loans.

This bill would provide for the licensure and regulation of lenders of flex loans by the State Banking Department.

This bill would establish the maximum interest rate and maximum duration of a flex loan and provide for fees that may be charged to a customer.

This bill would set qualifications, including financial guarantees, for lenders and provide civil penalties for violations by lenders.

This bill would also authorize the State Banking Department to enforce the provisions of this act and promulgate rules.

Relating to short-term loans; to authorize non-bank lenders to issue short-term unsecured loans, known as flex loans; to provide for the licensure and regulation of lenders of flex loans by the State Banking Department; to establish the maximum interest rate and maximum duration of a flex loan and provide for fees that may be charged to a customer; to set qualifications, including financial guarantees, for lenders and provide civil penalties for violations by lenders; and to authorize the State Banking Department to enforce the provisions of this act and promulgate rules.