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Free Payday Loan Newsletter. The frequency is typically once each month. If you have an interest in the payday loan industry, YOU NEED OUR Payday Loan NEWSLETTER!

WE PROMISE to never sell, give-away, or abuse your contact info. You will receive a confirmation email from us immediately.

Alabama Payday loan laws. Alabama Payday loan legislation.

Alabama Payday loan laws. Alabama Payday loan legislation. Alabama has specific payday advance laws. The permitted fee is 17.5% of the amount advanced. The permitted time period is a minimum of 10 days and a maximum of 31 days.

The maximum amount of the payday loan allowable is $500.00. No more than one rollover is allowed.

Alabama Payday Loan Laws & Alabama Payday Loan Legislation - State Information

Legal Status: Legal

Citation:
Ala. Code § 5-18A-1 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 10-31 days
Maximum Finance Rate and Fees: 17.50%; 3%/month after default
Finance Charge for 14-day $100 loan: $17.50
APR for 14-day $100 loan: 456.25%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: None (max $ amount of loans at one time: $500)
Rollovers Permitted: One (rollover)
Cooling-off Period: Next business day after 2 continuous loans repaid
Repayment Plan: Yes

Collection Limits:
Collection Fees: One $30 NSF fee; Court Costs; Reasonable Attorney's Fees up to 15% of face amount of check
Criminal Action: Prohibited (Unless check returned due to closed account)

Aloabama Payday Loan Information:
Regulator: Alabama Banking Department
Address: P.O. Box 4600 Montgomery AL 36103
Phone: (334) 242-3452
Fax: (334) 353-5961
Regulatory Contact: Arlene Baldwin, , Consumer Services Specialist, Bureau of Loans
Regulator Website

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FAQs for Deferred Presentment Services Act



Payday loan Businesses Launch Offensive

More than 200 title loan and cash advance businesses in Alabama have started an advertising and education campaign with the goal of reversing negative press about their lending practices.

Member stores, who established the Alabama Council for Fair Lending, announced a campaign they call "Borrow Smart Alabama". It includes television and radio commercials, along with in-store education discussing consumer financial education.

"Our industry has been mislabeled and misunderstood by advocacy groups who say they want to help low-income residents of our state," said Charles Hunter, spokesman for the council, in a news release.

The Alabama Council said they agree to a code that promises fairness, honesty and integrity in all practices.

Hunter said their businesses help many people "get back on their feet" to re-establish their credit and without their loans, they would "have nowhere else to turn in a financial emergency."

"We intend for this campaign to communicate the truth about our industry and to bring our stores together to reaffirm our commitment to our customers," he said.

"Our industry has been mislabeled and misunderstood by advocacy groups who say they want to help low income residents of our state. The truth is our services help many of our customers get back on their feet or reestablish their credit." Charles Hunter, Spokesman for the Alabama Council for Fair Lending

The association is publishing video testimonials and written statements from customers who have used short terms loans.

The Council for Fair Lending, a trade association of Alabama-based payday loan and title loan lenders, launched a statewide campaign today to encourage consumers to use the more than 200 member stores in Alabama that have committed to educating borrowers and helping them work toward financial stability.

The campaign, Borrow Smart Alabama, will include statewide television and radio commercials along with in-store customer education.

The Council for Fair Lending was established in May of 2007 to enforce "accountability within the industry as well as a need to better educate Alabama residents and members of the media about the important services short term lenders provide to their customers."

"Our industry has been mislabeled and misunderstood by advocacy groups who say they want to help low income residents of our state," said Charles Hunter, spokesman for the Council. "The truth is our services help many of our customers get back on their feet or reestablish their credit. Without us, they would have nowhere else to turn in a financial emergency. We intend for this campaign to communicate the truth about our industry and to bring our stores together to reaffirm our commitment to our customers."

All members of the Council for Fair Lending have agreed to a Code of Fair Lending to which stores must adhere. This code promises fairness, honesty and integrity in all business practices:

We, the members of this association, in order to best serve the citizens of this state, recognize and adopt the following operating principles:

* All customers will be treated with concern in an honest & professional manner.
* All customers will be fully informed of their borrowing rights & obligations.
* We will promote the responsible use of credit and strive to educate our customers on their financial choices.
* Our employees will treat all customers with courtesy, fairness & integrity and will respond to any complaint about our service promptly and directly.
* We will protect our customer’s rights to privacy with respect to personal information.
* We will honor and respect members of active military & their dependents. The Department of Defense’s regulations on loans will be strictly adhered to.
* We will comply with city, county, state and federal laws and keep our customers informed of the regulations that govern our actions.
* We will exercise compassion to cash advance customers when warranted by offering repayment options before proceeding with civil collections. Title customers whose vehicles are repossessed will be offered options to retrieve their vehicles.
* We will offer reasonably affordable loans to customers on fixed incomes.
* We will not allow customers to roll over a loan unless authorized by state law.
* We will give our customers the right to rescind, at no cost, a new loan on or before the close of the next business day.
* We will prominently display the Borrow Smart seal in all of our stores and adhere to the Borrow Smart Alabama Code of Customer Service.

The association is publishing video testimonials and written statements from customers who have used short terms loans. Customers were asked to submit comments on their experience with Borrow Smart member stores in June and July. More than 70 customers offered comments, all sharing positive experiences with short term lending.

Stores participating in Borrow Smart Alabama and adhering to the Code of Ethics can be identified by the Borrow Smart seal on their doors and inside the stores. Brochures available in the stores will educate consumers on smart lending practices. The Borrow Smart Code of Fair Lending is available only at Borrow Smart approved stores.

"We strongly believe that short term lending is the best choice for some consumers, but we also know that there are sometimes alternatives that would provide smarter solutions," Hunter said. "We want to make sure consumers are coming to Borrow Smart stores where they will get all the information they need to make the right financial choice."

The Council for Fair Lending represents 200 member stores in the state of Alabama.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to PaydayLoanIndustry.com