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Yes, the greater of $30 or the charge imposed by the bank.

The Alabama Consumer Credit Act, Ala. Code §§ 5-19-1 et seq. ("Mini-Code"), authorizes a creditor to contract for a rate on the balance and specified fees. The Attorney General's office has taken the position that a creditor may not charge a fee unless the fee is authorized by the Mini-Code or another Alabama statute. This database takes the position that other fees are not permitted unless expressly authorized by a statute, the Attorney General or the Alabama Banking Department, Bureau of Loans ("Banking Department").

The Mini-Code allows a creditor to contract for a returned check charge permitted under the Interest and Usury Law, Ala. Code §§ 8-8-1 et seq. ("Interest and Usury Law"). Ala. Code 5-19-31(b). The Interest and Usury Law authorizes a creditor to impose a bad check charge when the consumer's bank does not pay the check. The charge may be the greater of $30 or any charge imposed on the creditor by the bank. The returned check charge is not an interest charge, a finance charge, a time price differential, or any charge of a similar nature imposed as an incident to or as a condition to the extension of credit and is not included in the limit on charges for the extension of credit. Ala. Code § 8-8-15.

July 13, 2018   Show Redlined Changes