SB261 Alabama 2017 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2017

Title

Consumer lawsuit lenders, licensing, certain provisions of Mini Code apply to loans and extension of credit, Alabama Consumer Lawsuit Lending Act

Description

This bill would provide for the regulation of consumer lawsuit lenders and consumer lawsuit lending agreements. This bill would define a consumer lawsuit lender as a person who provides money or extends credit to a consumer based on the consumer's potential recovery of money in a legal dispute and in which the consumer may use the money or credit for a purpose other than prosecuting the legal dispute on which the extension money or credit is conditioned and in which the consumer lawsuit lender's recourse against the consumer is limited primarily to the amount recovered.

This bill would require consumer lawsuit lenders to obtain a license from the State Banking Department to make consumer lawsuit loans and extensions of credit and would make consumer lawsuit lenders and consumer lawsuit lending agreements subject to certain provisions of the Mini Code. This bill would require a consumer lawsuit lender to obtain the license regardless of the number of loans or extensions of credit the consumer lawsuit lender made in the preceding calendar year.

This bill would establish the maximum finance charge a consumer lawsuit lender could charge on a loan or an extension or credit made pursuant to a consumer lawsuit lending agreement.

This bill would specify that the maximum finance charge would apply regardless of the amount of the loan or extension of credit provided.

This bill would allow the Superintendent of Banks to adopt rules and would allow the rules to provide for the superintendent or a designee of the State Banking Department to issue interpretations of the rules and the act.

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Subjects

Consumers and Consumer Protection