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 [...]
30 days to pay: A simple but important step forward on payday lending reform in Alabama
Alabama borrowers pay interest rates of up to 456 percent a year on payday loans.These high-cost loans trap many struggling Alabamians in a debt cycle that deepens poverty and hurts the state’s economy. SB 138, sponsored by Sen. Arthur Orr, R-Decatur, would extend the time that payday borrowers have to repay to 30 days, up [...]
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 [...]
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.
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.