Good morning everyone,
I am pleased to report that Governor Ivey has signed HB335, now Act #2022-207, a copy of which is attached. The Act is now effective to allow a closing fee on loans made under the “Alternate Rate” (section 5-18-15(m)) of the Alabama Small Loan Act. The closing fee allows for a 4% fee up to $50 on loans made under the “Alternate Rate” up to $1500. Below is the bill language.
(7) In addition to the acquisition charge provided under subsection (m) (l), the licensee may collect a closing fee in an amount not to exceed the lessor of four percent of the loan amount or fifty dollars $50. The closing fee may be paid from the proceeds of the loan and financed by the licensee.
(8) Upon the prepayment in full of any loan under this subsection, any closing fee collected shall be subject to subsection (d), as it relates to refunds, provided, however, that the licensee may retain up to twenty-five dollars $25 of the closing fee.
The Act specifically provides that it applies to loan contracts entered into after the effective date, which is immediately following approval by the Governor. In other words, the Act is now law.
Our Alabama Small Loan Act licensees owe a great debt of gratitude for all of the hard work by legislators and our professionals and volunteers who have spent long hours in this legislative session in Montgomery. First and foremost, we thank Rep. Chris Blackshear and Senator Will Barfoot for their leadership in drafting and shepherding the bill through the House and Senate. Our House vote was 73-13, and in the Senate, it passed 32-0. I also want to recognize our outstanding lobbying team of John & Tami Teague and Jerry Spencer. Our member volunteers on the ground were spearheaded by myself and Whit Wright. Jim Rawls, Kevin Gardner, Gene Smith, Brenda Ford, Holly Munoz, and Rick Davis were also there to help. And, thanks to all of the member companies that helped financially.
A great Team is needed to make things happen. I want to thank everyone that helped with this legislation.