Regulatory Alerts1997-10-01
155-2-3-.08 Prohibited Charges Under the Small Loan Act
The Alabama regulatory authority issued this rule to prohibit lenders from charging borrowers any fees or charges not specifically authorized by the Small Loan Act or other applicable state laws. The regulation explicitly bans indirect costs such as finder’s, referral, notary, and attorney fees unless they are permitted exceptions. A prepaid interest surcharge authorized under Section 8-8-14(a) is excluded from the definition of prohibited charges.
Share