SB75 Alabama 2019 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2019

Title

Deferred presentment transactions, term set at 30 days, Sec. 5-18A-13 amd.

Summary

SB 75 would extend the minimum term of deferred presentment transactions to 30 calendar days (with a maximum of 31 days).

What This Bill Does

If passed, the term of a deferred presentment transaction must be at least 30 days and no more than 31 days after the contract date. Lenders would must provide written agreements and clear disclosures of all fees, with fees treated as finance charges under federal rules. Additionally, lenders would use a third-party database to verify that a borrower does not have more than $500 in outstanding deferred presentment transactions.

Who It Affects

• Consumers who use deferred presentment transactions, who would be affected by the longer minimum term and required fee disclosures.
• Deferred presentment providers (licensees), who would must enforce the new term limit, provide written disclosures, and use a third-party database to check borrowers' outstanding balances.

Key Provisions

• Minimum term for deferred presentment transactions is set to 30 calendar days, with a maximum of 31 calendar days after the contract date.
• Licensees must use a third-party private sector database to ensure customers do not have more than $500 in outstanding deferred presentment transactions.

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

Subjects

Deferred Presentment Transactions