Payday & Title Lending Reform

When low wages fail to cover the cost of living, many desperate borrowers turn to payday or auto title loans. But because Alabama law allows annual percentage rates of up to 456 percent for payday loans and 300 percent for title loans, these loans sap wealth from far too many families and communities.

Arise has worked for years to explain the dangers of high-cost lending for Alabama consumers, and our advocacy was a key force behind the 2015 creation of a statewide payday loan database, which allowed the state to enforce certain limits on payday loans. We continue to explore the burden that high-cost loans place on struggling Alabamians and to highlight policies that other states have enacted to protect consumers.

Fact Sheet

Federal ability-to-repay rule protects payday borrowers, Alabama Arise tells CFPB

Director Kathleen Kraninger: I read with disappointment your recent proposal to rescind the thoroughly considered, factually grounded Consumer Financial Protection Bureau (CFPB) rule provision mandating ability-to-repay determinations by lenders offering payday, title and balloon loans. As a policy organization working to advance the public good in a state with wholly insufficient consumer protections for borrowers, [...]
Issue
Payday & Title Lending Reform
Date
May 15, 2019
Author
Dev Wakeley
Report

Broke: How payday lenders crush Alabama communities

Alabama Arise and Alabama Appleseed Center for Law and Justice teamed up to produce this report on the history, financial effects and human impact of high-cost payday lending in our state. The report highlights and executive summary are below. Click here to read the full report, or click the "Download" button at the top of [...]
Issue
Payday & Title Lending Reform
Date
April 11, 2019
Author
Alabama Arise
Fact Sheet

30 days to pay: A simple but important step forward on payday lending reform in Alabama

Alabama borrowers pay interest rates of 456 percent a year on payday loans. These high-cost loans trap thousands of struggling Alabamians in a debt cycle that deepens poverty and hurts the state’s economy. SB 75, sponsored by Sen. Arthur Orr, R-Decatur, along with a House version sponsored by Rep. Danny Garrett, R-Trussville, would extend the [...]
Issue
Payday & Title Lending Reform
Date
March 12, 2019
Author
Alabama Arise
Fact Sheet

Payday lending reform: Ending a debt trap in Alabama

On busy highways and run-down streets across the state, you can’t miss them: big, bright signs promising easy money. From payday loans to auto title pawns to anticipation loans on tax refunds, Alabamians face a dizzying array of credit services designed to trap consumers in financial quicksand. This fact sheet highlights the pitfalls of payday [...]
Issue
Payday & Title Lending Reform
Date
May 31, 2018
Author
Dev Wakeley
Fact Sheet

SB 284 offers Alabama consumers protections from high-cost loans and moves lending reform forward

Most states have laws against usury, or excessive interest. Alabama’s Small Loan Act of 1959 caps the interest rate on traditional small, short-term loans at 3 percent a month, or an annual percentage rate (APR) of 36 percent. But more recent laws covering payday and auto title lenders allow APRs many times higher than that. For [...]
Issue
Payday & Title Lending Reform
Date
March 23, 2017
Author
Alabama Arise
Fact Sheet

The high costs of payday and auto title lending in Alabama

How much should people have to pay to get financial help in a tight spot? Payday and auto title lending are two forms of high-cost credit marketed toward Alabamians who are desperate for short-term cash. These loans carry triple-digit interest rates that can threaten the economic well-being of borrowers who fall behind on payments.
Issue
Payday & Title Lending Reform
Date
August 13, 2015
Author
Stephen Stetson
Fact Sheet

Hard cash: Predatory lending in Alabama

On busy highways and run-down streets across the state, you can't miss them -- big, bright signs promising easy money. From payday loans to refund anticipation loans to title pawns, Alabamians face a dizzying array of credit services designed to trap consumers in financial quicksand. This updated fact sheet provides new information on predatory lending in Alabama.
Issue
Payday & Title Lending Reform
Date
October 7, 2010
Author
Stephen Stetson
All Issue Resources