SB249 Alabama 2017 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2017

Title

Small loans under Ala. Small Loan Act, minimum and maximum amount of loans increased and corresponding interest rates, max term of loans, Secs. 5-18-4, 5-18-10, 5-18-13, 5-18-15 am'd.

Summary

SB249 would raise the Alabama Small Loan Act loan limit to $1,500, set minimum 3-month and maximum 18-month terms, and revise how interest and charges are calculated for small loans.

What This Bill Does

Licensed lenders could make loans up to $1,500 instead of $1,000. Loans would have a minimum term of 3 months and a maximum term of 18 months. The bill creates a rate/charge framework with either a standard two-tier interest structure (3% per month on the first $200 and 2% per month on the remainder) or an alternative structure with an acquisition charge up to 10% plus a monthly installment charge based on loan size, with other charges limited. Lenders must clearly display a full schedule of charges, and there are rules on refunds for prepayment and truthful advertising.

Who It Affects

• Licensed small-loan lenders: gain authority to offer larger loans and must follow new rate structures, disclosure requirements, and advertising rules.
• Borrowers seeking small loans: can borrow up to $1,500 under defined repayment terms, with clearer information about costs and protections for prepayment refunds and advertising practices.

Key Provisions

• Increase lending authority to $1,500 for loans under the Alabama Small Loan Act.
• Set minimum loan term to 3 months and maximum term to 18 months.
• Establish rate/charge framework: standard tiered rates (3%/month up to $200; 2%/month on the remainder) or alternative charges (acquisition up to 10% of principal plus monthly installment charges by loan size) with other charges limited.
• Require clear disclosure: licensees must display a full schedule of charges and comply with advertising accuracy and related consumer protections.

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

Subjects

Banks and Banking