Alabama Administrative Code › Title 155 - STATE BANKING DEPARTMENT BUREAU OF LOANS › Chapter 155-2-2 - ALABAMA CONSUMER CREDIT ACT REGULATIONS › Section 155-2-2-.10 - Records to be Maintained by Licensee - Alabama Consumer Credit Act

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Unless
			 otherwise approved pursuant to Regulation
			 155-2-2-.10(6),
			 each licensee shall maintain adequate files at each licensed location
			 containing all information necessary to verify compliance with the Alabama
			 Consumer Credit Act and regulations, including, but not limited to, the
			 following:
a. Charges and disclosure
			 information.
b. Paid out, renewed
			 or refinanced account records from which refund verifications may be made shall
			 be kept in readily available files covering a maximum of the preceding two-year
			 period. Older records shall be removed from files or separately segregated.
			 Refund records shall itemize the amount of finance charge refunded and the
			 amount refunded on each type of permissible insurance included in the
			 transaction.
c. Each licensee shall
			 maintain up-to-date forms on all insurance claims filed, which shall contain
			 all pertinent information necessary to verify compliance with the Act and
			 regulations and proper settlement of all such claims. A copy of the death
			 certificate shall be maintained on death claims. A copy of the police and/or
			 fire report shall be maintained on property claims if such a report is made. In
			 the event of a death claim, the unearned premium of credit life insurance is
			 considered earned by the insurance company but the unearned premium of all
			 other credit insurance shall be refunded to the second beneficiary or the
			 estate of the debtor. The settlement of death claims shall be as of the date of
			 death. The proceeds of any insurance claim applicable to a period of time
			 preceding death shall be credited to the account prior to the computation of
			 death claim benefits. All amounts in excess of that required to pay the
			 indebtedness shall be paid by check to the second beneficiary or estate of the
			 debtor.
d. An up-to-date record of
			 suits filed against debtors and of repossessions whether judicial, non-judicial
			 or voluntary release by the debtors and a deficiency itemization in connection
			 with repossessions including but not limited to add-ons prior to sale (i.e.,
			 re-conditioning, battery, etc.). This record shall be maintained on a prepared
			 sheet listing, including, but not limited to, the name and address of the
			 debtor, the account number, the amount financed and the date of the contract,
			 the name of the court and county in which suit was filed and the case number,
			 the date of suit and amount, the date of judgment and amount, the date of
			 garnishment, amount and employer. For credit sale transactions, the record also
			 must list the cash price of the goods repossessed or surrendered, a condition
			 report and book value as applicable on the repossessed item(s), and the amount
			 received from the sale of the repossessed item(s), the date sold and the name
			 and address of the purchaser.
e. An
			 up-to date record of claims filed in arbitration which have not resulted in
			 litigation.
f. When any obligation
			 is paid in full, the licensee shall cause each instrument executed by the
			 debtor evidencing the debt to be marked "Paid" or "Canceled", showing the date
			 of such payment or cancellation, and when duly requested, returned promptly to
			 the debtor together with the release of any mortgages and termination of
			 security interests filed.