Regulatory Alerts2002-08-01
Collection Activities Amended Under the Small Loan Act
The Alabama regulatory authority amended Rule 155-2-3-.06 to define unreasonable collection practices under the Small Loan Act. The regulation prohibits tactics such as causing physical harm, trespassing, simulating legal documents, and contacting borrowers between 9:00 p.m. and 6:00 a.m. It also bans denying possession of personal property without proper security interest and threatening criminal prosecution for checks held as loan security.
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