Regulatory Alerts1997-10-01
Alabama Consumer Credit Act Refinancing Rules for Pre-Computed Contracts
The Alabama Department of Revenue issued regulations under the Alabama Consumer Credit Act to govern the consolidation and refinancing of pre-computed consumer credit transactions. The rules mandate that the annual percentage rate of a new consolidated contract cannot exceed the lowest rate of the prior contracts and clarify that specific filing fees and interest surcharges are not considered duplicate expenses. Conversely, points permitted by statute are classified as duplicate fees and are prohibited in subsequent contracts, with rate determinations fixed at the time of consummation regardless of payment timing.
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