Code of Alabama - Title 5: Banks and Financial Institutions - Chapter 19 - Consumer Finance

• Section 5-19-1 Definitions
  For the purposes of this chapter, the following terms shall have the following meanings respectively ascribed to them by this section: (1) FINANCE CHARGE. The...
• Section 5-19-1.1 Legislative findings
  The Legislature finds as fact and determines that: (1) The Alabama Consumer Credit Act, Title 5, Chapter 19, (commonly referred to as the "Mini-Code"), was...
• Section 5-19-3 Maximum finance charges; contracting for minimum finance charge; alternate per month computed finance charge
  (a) Except under open-end credit plans, the maximum finance charge for any credit transaction where the original amount financed is less than two thousand dollars...
• Section 5-19-4 Additional charges for default or deferral; prepayment; renewal or refinancing; real property transactions
  (a) When a scheduled payment in a consumer credit transaction is in default 10 days or more, the creditor may charge and collect a late...
• Section 5-19-5 Acceptance of negotiable instruments as evidence of consumer debt
  In a consumer credit sale, the seller may not take as evidence of the obligation of the buyer, a negotiable instrument other than (1) a...
• Section 5-19-6 Copies of instruments signed by debtors to be furnished to debtors; required statement in contracts, etc.; limitation on disclosure requirements; intent, applicability of limitation
  (a) Any creditor, when extending credit with respect to a consumer credit transaction, other than under an open-end credit plan, shall at that time furnish...
• Section 5-19-7 Right to refinance amount of certain scheduled payments
  With respect to a consumer credit transaction, if any scheduled payment is more than one and one-half times as large as the average of earlier...
• Section 5-19-8 Assignee of seller subject to claims and defenses of buyer
  With respect to a consumer credit sale, an assignee of the rights of the seller is subject to all claims and defenses of the buyer...
• Section 5-19-9 Application of payments when buyer indebted to same seller for two or more consumer credit sales
  When the buyer is indebted to a particular seller for two or more consumer credit sales of goods and the goods which were the subject...
• Section 5-19-10 Contract provisions for attorney's fees
  A contract for a consumer credit transaction with an original amount financed not exceeding three hundred dollars ($300) may not provide for payment by the...
• Section 5-19-12 Buyer's right to cancel home solicitation sale
  (a) A buyer has the right to cancel a home solicitation sale until midnight of the third business day following execution by the buyer of...
• Section 5-19-13 Repossession or acceptance of surrender of goods priced at one thousand dollars or less
  If any seller or assignee of the seller repossesses or voluntarily accepts surrender of goods sold in which the seller or assignee has a security...
• Section 5-19-14 Rebates or discounts, etc., as inducement for aiding sale to another prohibited
  With respect to a consumer credit sale, the seller may not give or offer to give a rebate or discount, or otherwise pay or offer...
• Section 5-19-15 Garnishment
  Prior to entry of judgment on a consumer credit transaction, the creditor may not attach unpaid earnings of the debtor by garnishment. Notwithstanding the garnishment...
• Section 5-19-16 Refusal by court to enforce unconscionable agreement
  With respect to a consumer credit transaction, if the court as a matter of law finds the contract or any provision of the contract to...
• Section 5-19-17 Inducing obligation on more than one contract in order to obtain higher finance charge prohibited; consolidation of existing precomputed consumer credit transaction contract and subsequent precomputed consumer credit transaction
  (a) No creditor shall induce or permit any person or any husband and wife, jointly or severally, to become obligated directly or contingently, or both,...
• Section 5-19-18 Installment payment of debt of one thousand dollars or less
  With respect to consumer credit transactions, where the debt is payable in installments, not made pursuant to an open-end credit plan and in which the...
• Section 5-19-19 Liabilities of creditor making excess finance charge; failure to obtain license; damages for deliberate violation or reckless disregard; written notice of violations; oral statements not admissible; fiduciary duty not created
  (a)(1)(i) Any creditor charging a finance charge in excess of the amount authorized herein, except as specified in subdivision (2), shall forfeit debtor's actual economic...
• Section 5-19-20 Insurance
  (a) With respect to any consumer credit transaction, the creditor shall not require any insurance other than insurance against loss of or damage to any...
• Section 5-19-21 Administrator authorized to make rules and regulations; filing notice of intended action with Legislative Reference Service; transactions entered into after May 20, 1996
  (a) The administrator is authorized and empowered to promulgate rules and regulations and official interpretations (collectively "regulations") as may be necessary or appropriate for the...
• Section 5-19-22 License to engage in business of making consumer loans or taking assignments of consumer credit contracts - Required; exceptions; application; investigation; standards for issuance; hearing; licensing under Small Loan Act; fees; participation in Nationwide Mortgage Licensing System and Registry
  (a) No creditor shall engage in any one or more of the following activities without first having obtained a license from the administrator: (1) Making...
• Section 5-19-23 License to engage in business of making consumer loans or taking assignments of consumer credit contracts - Revocation or suspension
  (a) The administrator may issue to a person licensed under this chapter an order to show cause why his license should not be revoked or...
• Section 5-19-24 Examinations and investigations of licensees by administrator
  (a) For the purpose of determining compliance with this chapter, the administrator may, at any reasonable time, cause an examination to be made at the...
• Section 5-19-25 Cease and desist orders by administrator; penalties for violation of this chapter; right to counsel at hearing; judicial review
  After notice and hearing, the administrator may order a licensee under this chapter or a person acting on behalf of the licensee to cease and...
• Section 5-19-26 Appeals to circuit court from order of administrator; appeals from decision of circuit court
  (a) Any interested party or intervener may appeal an order of the administrator to the Circuit Court of Montgomery County or to the circuit court...
• Section 5-19-29 Injunctions
  (a) The administrator may bring an action to restrain a creditor or a person acting in his behalf from engaging in any business subject to...
• Section 5-19-30 Penalty for violations
  A creditor who willfully makes charges in excess of those permitted by Section 5-19-3 or a creditor who willfully engages in the business of making...
• Section 5-19-31 Nonapplicability of chapter to certain transactions; certain laws not repealed or amended
  (a) The provisions of this chapter, except the provisions of subdivision (1) of Section 5-19-1 and Section 5-19-3, shall not apply (i) to any consumer...
• Section 5-19-32 Service contracts
  Any creditor who extends credit with respect to a consumer credit sale, may sell or finance, or both, a service contract covering tangible goods which...
• Section 5-19-33 Account maintenance fee
  (a) In addition to other lawful charges permitted under various state or federal laws, except under open-end credit plans, a creditor may, if provided in...

Last modified: May 3, 2021