(a) Any creditor, when extending credit with respect to a consumer credit transaction, other than under an open-end credit plan, shall at that time furnish to the debtor a copy of each instrument executed by the debtor in connection with the consumer credit transaction. The consumer credit transaction contract or note shall contain the following statement in eight point or larger type immediately above the space for the borrower’s signature.
“CAUTION - IT IS IMPORTANT THAT YOU THOROUGHLY READ THE CONTRACT BEFORE YOU SIGN IT.”
(b) No disclosures are required by this chapter to be made by a creditor with respect to any transaction other than disclosures required by regulations made by the administrator pursuant to Section 5-19-21 and disclosures required by subsection (a) above and by Sections 5-19-12(a) and 5-19-20(e).
(c) Without limiting the generality of subsection (b), there is no obligation or duty under this chapter to disclose to a debtor any agreement to assign or otherwise transfer a consumer credit transaction contract at a discount or that the assignee of, or person who funded, the consumer credit transaction agreed or may agree to pay the creditor or other person who originated the consumer credit transaction all or a portion of the prepaid finance charges and other fees and/or a portion of the finance charge to be paid by the debtor over the term of the transaction and/or other compensation irrespective of how the compensation is determined or described.
(d) Except as modified hereby, the provisions of subsections (b) and (c) confirm, clarify and are declaratory of existing law. Except as modified hereby, the provisions of Alabama Act No. 94-115 remain applicable to consumer credit transactions entered into on, before, and after February 24, 1994.
(Acts 1971, No. 2052, p. 3290, §4; Acts 1994, No. 94-115, p. 124, §2; Acts 1996, No. 96-576, p. 887, §2.)
Notes of Decisions
Ex Parte Ford Motor Credit Co., 717 So. 2d 781 (Ala. 1997).
· cites it 3× “[4] Ala.Code 1975, § 5-19-6(c), provides, in relevant part: "[T]here is no obligation or duty under this chapter to disclose to a debtor any agreement to assign or otherwise transfer a consumer credit transaction contract at a discount or that the assignee of, or person who…”
In Re Crotzer, 147 B.R. 252 (Bankr. N.D. Ala. 1992).
· cites it 7× “Code § 5-19-6 (1975) 1 requires a cautionary statement to appear immediately above the space for the borrower’s signature.”
Briggs v. Countrywide Funding Corp., 949 F. Supp. 812 (M.D. Ala. 1996).
· cites it 9× “DISCUSSION Countrywide essentially argues that RES-PA’s narrow preemption provision does not apply to Ala.Code § 5-19-6, and therefore, the plaintiffs state common law claims for fraud, intentional interference with contractual relationships and inducement of breach of a…”
Briggs v. Countrywide Funding Corp., 931 F. Supp. 1545 (M.D. Ala. 1996).
· cites it 11× “Reacting to the Smith decision, the Alabama Legislature enacted § 5-19-6 in response to the “uncertainty” under Alabama law concerning “whether the Mini-Code requires a separate disclosure of finance charges such as ‘yield spread premiums.”
Sanford v. H.A.S., Inc., 136 F. Supp. 2d 1215 (M.D. Ala. 2001).
· cites it 7× “Sanford’s final argument, which alleges that under 1975 *1220 Ala.Code § 5-19-6 the arbitration agreement is invalid because a copy was not given to him, is, again, limited to the arbitration agreement.”
Bramlett v. Adamson Ford, Inc., 717 So. 2d 772 (Ala. Civ. App. 1996).
· cites it 4× “94-115, which amends Section 5-19-6, provides in Section 4: "Section 6-5-102 and Sections 8-19-1 through 8-19-15 are not amended or repealed by this act.”
Dubose v. First Sec. Sav. Bank, 974 F. Supp. 1426 (M.D. Ala. 1997).
· cites it 2× “The Court found that under Ala.Code § 5-19-6(e), defendants had no duty to make such a disclosure.”
Mack v. Gen. Motors Acceptance Corp., 169 F.R.D. 671 (M.D. Ala. 1996).
“As the court noted, “We conclude that although § 5-19-6 does not impose a duty to disclose a discount in a consumer credit transaction, that section does not mean that a duty to disclose such a discount cannot arise from other circumstances.”
Jackson v. Cit Grp./sales Fin., 630 So. 2d 368 (Ala. 1993).
· cites it 4× “Violation of the Mini-Code The second issue is whether the contract is null and void as violating § 5-19-6 of the Mini-Code. Because the Mini-Code is a regulatory statute designed to protect the public, contracts made in derogation of its provisions *373 are null, void, and…”
Robbins Tire & Rubber Credit Union v. Hunt, 669 So. 2d 969 (Ala. Civ. App. 1995).
· cites it 4× “” As is required by Ala.Code 1975, § 5-19-6, the following language appears in eight-point type just above the signature lines of the promissory note/security agreement: “CAUTION — IT IS IMPORTANT THAT YOU THOROUGHLY READ THIS CONTRACT BEFORE YOU SIGN IT.”
Mills v. Green Tree Acceptance, Inc., 767 So. 2d 1097 (Ala. 2000).
“” Count II alleges that the cautionary language contained in the contract did not comply with § 5-19-6 and, therefore, that the underlying debt should be adjudged unenforceable.”
— Ala. Code § 5-19-6(c) — 4 cases
Ex Parte Ford Motor Credit Co., 717 So. 2d 781 (Ala. 1997).
“[4] Ala.Code 1975, § 5-19-6(c), provides, in relevant part: "[T]here is no obligation or duty under this chapter to disclose to a debtor any agreement to assign or otherwise transfer a consumer credit transaction contract at a discount or that the assignee of, or person who…”
Briggs v. Countrywide Funding Corp., 931 F. Supp. 1545 (M.D. Ala. 1996).
“Reacting to the Smith decision, the Alabama Legislature enacted § 5-19-6 in response to the “uncertainty” under Alabama law concerning “whether the Mini-Code requires a separate disclosure of finance charges such as ‘yield spread premiums.”
Bramlett v. Adamson Ford, Inc., 717 So. 2d 772 (Ala. Civ. App. 1996).
“94-115, which amends Section 5-19-6, provides in Section 4: "Section 6-5-102 and Sections 8-19-1 through 8-19-15 are not amended or repealed by this act.”
Briggs v. Countrywide Funding Corp., 949 F. Supp. 812 (M.D. Ala. 1996).
“DISCUSSION Countrywide essentially argues that RES-PA’s narrow preemption provision does not apply to Ala.Code § 5-19-6, and therefore, the plaintiffs state common law claims for fraud, intentional interference with contractual relationships and inducement of breach of a…”
— Ala. Code § 5-19-6(d) — 1 case
Ex Parte Ford Motor Credit Co., 717 So. 2d 781 (Ala. 1997).
“[4] Ala.Code 1975, § 5-19-6(c), provides, in relevant part: "[T]here is no obligation or duty under this chapter to disclose to a debtor any agreement to assign or otherwise transfer a consumer credit transaction contract at a discount or that the assignee of, or person who…”
— Ala. Code § 5-19-6(e) — 2 cases
Dubose v. First Sec. Sav. Bank, 974 F. Supp. 1426 (M.D. Ala. 1997).
“The Court found that under Ala.Code § 5-19-6(e), defendants had no duty to make such a disclosure.”
Briggs v. Countrywide Funding Corp., 931 F. Supp. 1545 (M.D. Ala. 1996).
“Reacting to the Smith decision, the Alabama Legislature enacted § 5-19-6 in response to the “uncertainty” under Alabama law concerning “whether the Mini-Code requires a separate disclosure of finance charges such as ‘yield spread premiums.”
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