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Alabama Small Loan Act

Alabama · Banks and Financial Institutions · §§ 5-18-1 to 5-18-9 · 24 sections

Overview

The New Mexico Small Loan Act governs consumer lending in small dollar amounts, requiring anyone in the business of making such loans to obtain a license from the state and submit to investigation, examination, and ongoing supervision by the licensing agency. It caps and prescribes the method of computing interest and other charges, restricts the fees, insurance premiums, and collection costs a lender may impose, bars prepayment penalties, and sets requirements for loan documentation, installment terms, and credit reporting. The act exempts certain lenders, treats evasions such as disguised wage purchases as covered loans, and backs its requirements with license revocation, civil penalties, and the loss of the right to collect charges on offending loans.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.

In the courts

Sections of this act have been cited in 8 court decisions.

Most-cited authority: 294 F.3d 1298 - Bess v. Check Express

Sections covered

Enacted in other states

New Mexico

All Alabama named statutes →

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