(a) A pawnbroker may contract for and receive a pawnshop charge in lieu of interest or other charges for all services, expenses, costs, and losses of every nature but not to exceed 25 percent of the principal amount, per month, advanced in the pawn transaction.
(b) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under subsection (a) shall be uncollectible and the pawn transaction shall be void. The pawnshop charge allowed under subsection (a) shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month.
Structure Code of Alabama
Title 5 - Banks and Financial Institutions.
Chapter 19A - Alabama Pawnshop Act.
Section 5-19A-1 - Short Title.
Section 5-19A-2 - Definitions.
Section 5-19A-3 - Pawnbroker to Enter on Pawn Ticket Record of Information.
Section 5-19A-4 - Certain Information to Be Printed on Pawn Tickets.
Section 5-19A-6 - Redemption or Automatic Forfeiture of Pledged Goods.
Section 5-19A-7 - Pawnshop Charge; Amounts in Excess of Pawnshop Charge.
Section 5-19A-8 - Certain Acts by Pawnbrokers Prohibited.
Section 5-19A-12 - Eligibility for Pawnshop License; Application Fee.
Section 5-19A-13 - Suspension or Revocation of License; Notice and Hearing; Surrender of License.
Section 5-19A-14 - Application for New Pawnshop License, Transfer of Existing License, Etc.
Section 5-19A-16 - Penalties for Failure to Secure License.
Section 5-19A-18 - Department of Public Safety to Supply Available Arrest and Conviction Records.
Section 5-19A-19 - Ordinances to Be in Compliance With but Not More Restrictive Than Chapter.