Alabama House approves payday loan database - ABC 33/40 - Birmingham News, Weather, Sports

Alabama House approves payday loan database

Posted: Updated:
STATEWIDE -

The Alabama House of Representatives has voted to create a state database to enforce existing limits on payday loans.  Representatives approved the bill on a 93-1 vote Thursday morning.  It now moves to the Alabama Senate.  Birmingham Representative, Patricia Todd, called the creation of the database a good first step in the regulation of the payday loan industry.

Existing law says people cannot have more than $500 out in loans out at one time.  Without a central database, customers could go from lender to lender taking out multiple loans exceeding the gap.  Rep. Todd says that traps people in a cycle of high-interest debt.

The bill approved by the House does not include interest rate caps that Todd had sought to place on the loans.

Most Popular
Stories
Videos
loading...