CUSTOMERS MUST BE NOTIFIED OF THEIR OPTION TO PAY IN FOUR EQUAL MONTHLY PAYMENTS BY REGULATION

AN ALABAMA STATE BANKING DEPARTMENT REGULATION

 

Based on an Alabama State Banking Department regulation, any deferred deposit customer (payday) who becomes delinquent must be notified of their option to pay their balance over four equal monthly payments at no additional fee.  Click here to see an example of signage that deferred deposit lenders are required to display on their wall regarding this option.

Non compliance with either signage or the regulation will result in a violation.  Violations may result in fines and/or revocation of license.

Here is the state regulation:

REGULATION 155-2-4-.12 re: PROHIBITED ACTS, specifically, no litigation without offer

http://www.banking.alabama.gov/pdf/regulations/BOL/current/Chapter204/155_2_4_12.pdf

(2) Licensees may not file legal claims to collect delinquent deferred presentment transactions, without first offering the customer in writing an extended repayment plan of four equal monthly payments at no additional cost.