HB587 Alabama 2014 Session

Under existing law, deferred presentment transactions, commonly referred to as payday loans, are regulated by the State Banking Department pursuant to the Deferred Presentment Services Act

This bill would allow a customer to repay a deferred presentment transaction over a six month period

This bill would forbid the extension of a deferred presentment transaction

This bill would decrease the extended repayment option from four months to three months

This bill would allow a licensee to collect a bad check fee for each bad check presented

This bill would require licensees to use a database designated by the supervisor to ensure that a customer does not have any deferred presentment transaction over $500

This bill would require each licensee to report within a specified time certain information to the supervisor and the supervisor to publish the aggregated data to the public

To amend Sections 5-18A-2, 5-18A-12, and 5-18A-13 of the Code of Alabama 1975, relating to deferred presentment transactions; to allow a customer to repay a deferred presentment transaction over a six month period; to forbid the extension of a deferred presentment transaction; to decrease the extended repayment option from four months to three months; to allow licensees to collect a bad check fee for each bad check presented; to require licensees to use a database designated by the supervisor; require each licensee to report within a specified time certain information to the supervisor and the supervisor to publish the aggregated data to the public.