Regulatory Alerts2013-10-01
Locations Effective: October 1, 2013
The Alabama Bureau of Loans, under statutory authority from the Code of Alabama 1975, mandates that every location facilitating deferred presentment loans must be licensed. A licensed location encompasses any site where loan applications are processed or where customers obtain loan information via internet, telephone, or kiosks, while excluding administrative offices limited to bookkeeping duties. Transactions conducted at unlicensed locations are declared uncollectable and unenforceable under the Deferred Presentment Services Act.
155-2-4-.06 Locations – Deferred Presentment Services Act (1) Each location where deferred presentment loans are made shall be licensed. A “location” shall include any location at which: (i) a deferred presentment loan application is provided, taken, or completed in person, or (ii) where a potential customer obtains information about the terms and conditions of deferred presentment loans and includes the use of the internet, facsimile, telephone, kiosk, or other means. Transactions entered without benefit of a license under the Deferred Presentment Services Act shall be uncollectable and unenforceable. (2) Location shall not include administrative offices at which only bookkeeping, billing, or accounting duties are performed for separate deferred presentment loan locations. Author: Scott Corscadden, Supervisor, Bureau of Loans Statutory Authority: Code of Alabama 1975, §5-18A-10, §5-18A-3 and §5-18A-3. History: Effective October 1, 2013