Alabama Administrative Code Title 155 - STATE BANKING DEPARTMENT BUREAU OF LOANS
Title 155 of the Alabama Administrative Code is dedicated to the STATE BANKING DEPARTMENT BUREAU OF LOANS. This bureau, often referred to as the "Bureau of Loans" or "BOL," is a crucial part of the Alabama State Banking Department. Its primary role is to administer and enforce various state laws that regulate certain types of non-depository financial institutions and consumer lending activities.
The regulations under Title 155 are designed to protect Alabama consumers by licensing, examining, and supervising these entities to ensure they comply with state law and operate in a fair and transparent manner.
Here's a breakdown of the key areas covered by Title 155, based on its chapter structure:
I. General Application Regulations (Chapter 155-2-1):
This chapter sets out the foundational rules that apply across various types of licenses administered by the Bureau of Loans. This would include:
General definitions.
Application procedures for licenses.
Requirements for operating locations.
General standards for licensees.
Rules for amendments to licenses or changes in ownership.
II. Alabama Consumer Credit Act Regulations (Chapter 155-2-2):
This chapter focuses on the Alabama Consumer Credit Act, often referred to as the "Mini-Code." This act regulates a broad range of consumer credit transactions. The regulations here would cover:
Licensing: Requirements for companies engaged in making consumer loans or taking assignments of consumer credit contracts. This includes financial requirements (e.g., minimum tangible net worth/capital of $25,000 per location), application fees, and procedures for Automated Loan Machines (ALMs).
Permitted Charges: Rules regarding finance charges, interest rates, deferral and extension charges, and other fees that can be assessed on consumer loans.
Insurance: Regulations concerning the sale of insurance in connection with consumer loans.
Refunds: Rules for calculating and providing refunds to consumers.
Record Keeping and Reporting: Requirements for licensees to maintain specific records and submit annual reports to the Bureau.
Restricted and Other Business Activities: Rules defining what activities are restricted and what other types of business can be conducted at a licensed location.
Examinations: Procedures and fees related to the Bureau's examination of licensee records to ensure compliance.
III. Alabama Small Loan Act Regulations (Chapter 155-2-3):
This chapter specifically regulates businesses operating under the Alabama Small Loan Act. This act typically covers smaller, often unsecured, personal loans. The regulations would detail:
Licensing requirements specific to small loan companies.
Permissible interest rates and charges for small loans.
Rules on collection activities.
Prohibited charges.
Minimum and maximum loan terms.
Record-keeping requirements.
IV. Deferred Presentment Services Act Regulations (Chapter 155-2-4):
This chapter pertains to the Alabama Deferred Presentment Services Act, which governs what are commonly known as "payday loans" or "cash advance loans." These regulations cover:
Licensing requirements for deferred presentment service providers.
Allowable fees and charges.
Rules regarding the number and frequency of deferred presentment transactions.
Prohibitions on certain practices.
Record-keeping and reporting mandates.
Primary Role and Regulated Entities:
The Bureau of Loans' primary role is consumer protection through the robust regulation and oversight of various non-depository lenders. The types of financial institutions and activities it regulates include:
Small Loan Companies
Consumer Credit Lenders (under the Mini-Code)
Pawnshops (under the Alabama Pawn Shop Act)
Mortgage Brokers (under the Alabama Mortgage Brokers Licensing Act and the SAFE Act)
Deferred Presentment Service Providers (Payday Lenders)
Mortgage Loan Originators (MLOs)
The Bureau has the statutory authority to examine the records and transactions of these licensees to ensure their compliance with Alabama laws. This involves regular on-site examinations and reviews of financial data.
In essence, Title 155 of the Alabama Administrative Code provides the detailed rules that enable the State Banking Department's Bureau of Loans to carry out its critical function of licensing, supervising, and enforcing consumer protection laws within Alabama's non-depository lending market.
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