SB67 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2016
Title: Consumer, regulate the lending of money, provide criminal penalties, Alabama Consumer Lawsuit Lending Act
Summary: SB67 would create the Alabama Consumer Lawsuit Lending Act to regulate consumer lawsuit lending by licensing lenders, capping finance charges, and giving state regulators authority to oversee the practice.
What This Bill Does
If passed, the bill would treat each money/credit extension to a consumer in a dispute as a consumer loan with a set maximum finance charge. Lenders would need a state license and would be subject to specific consumer lending rules and oversight by the State Banking Department. It also allows the regulator to issue rules and interpretations and provides remedies for violations, with a phased effective date and transitional licensing requirements.

Who It Affects
Consumers in Alabama who receive money or credit from consumer lawsuit lenders would have loans defined and capped by the act, with repayment tied to the consumer's recovery in a dispute.
Consumer lawsuit lenders (the lenders themselves) would need to obtain a license, follow specified lending rules, be subject to state regulation, and face potential remedies for violations.

Key Provisions
Defines terms such as consumer, consumer lawsuit lender, consumer lawsuit lending, and finance charge, and states that each provision of money or credit is a consumer loan.
Sets a maximum finance charge of $10 per $100 of principal per year (about 10% annual rate), applicable regardless of loan size or structure.
Requires every consumer lawsuit lender to obtain a license under Section 5-19-22 and to comply with related licensing provisions (Sections 5-19-16, 5-19-19, 5-19-23 to 5-19-26, and 5-19-29).
Gives the Superintendent of Banks authority to issue regulations and official interpretations for enforcing the act.
Provides remedies for violations of the act by a consumer lawsuit lender.
Effective date is the first day of the third month after passage; transitional licensing deadlines require certain lenders to be licensed by September 30, 2016, with prorated license fees of $125 per office for the period ending December 31, 2016.

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