Payday financing has for ages been controversial. These high-interest loans can be a trap for consumersâ€“typically, the consumers who can least afford it while payday loan providers bill themselves as an important safety net for people in need of quick cash to cover unexpected expenses.
Based on data held in the Alabama Department of Banking, in 2019, Alabamians lent about $563.6 million from loan providers in Alabama and took out 1.6 million loans that are payday. These loans created $98.4 million in charges to your cash advance lenders. A bill sponsored by Sen. Arthur Orr, R-Decatur allowing borrowers as much as 30 times to settle a quick payday loan in place of faster periods of less than 10 times had been killed by the Alabama Senate Banking and Insurance Committee by an 8-6 vote in February 2020. Read more “New Cash Advance Protections Revoked by the buyer Financial Protection Board”