Alert

May 31, 2017

Alabama Enacts Legislation Amending Small Loan Act

Alabama House Bill 314, which was signed into law by the governor on May 24, 2017, makes several changes to the Alabama Small Loan Act, Ala. Code §§ 5-18-1 et seq. H.B. 314 makes the following changes to the Act:

• Increases the maximum amount financed from less than $1,000 to less than $1,500;
• Increases the maximum installment account handling charge for loans made using the alternative rates of charge under Ala. Code § 5-18-15(m);
• Increases the minimum term for repayment from 1 month to 3 months for loans made using the alternative rates of charge; and
• Increases the maximum term for repayment from 12 months to 18 months for loans made using the alternative rates of charge.

The legislation is effective immediately.