The payday loan industry is gaining popularity in recent years as many US citizens see it as a first choice when it comes to taking out a loan. The residents of Alabama are also highly interested in what the service has to offer. Alabama payday loans laws are explained below.
In 1763, the British took control of the area that we call Alabama today. However, after the American Revolution, they had to give almost all the area to Spain and the US. In the 1950s and 1960s, the state of Alabama was the site of civil-right landmark actions such as the “Freedom March” from Selma to Montgomery and the bus boycott in Montgomery.
Nowadays, the economy of Alabama is based mainly on manufacturing paper, chemicals, apparel and textiles, rubber and plastics, automobile manufacturing and primary metals. Alabama is also a major producer of coal, steel and iron.
Alabama is the 30th largest state in the United States and it is 24th most populous with a population of over 4,858,979.
Payday loans explanation
Normally, a payday loan is a short-term loan which the borrower has to pay back in full when he receives his next paycheck. Payday loans are also referred to as cash advances.
Alabama payday loan laws regulations
In 1999, Alabama was among the 19 states that were involved in legislating small loans. In 2002, however, most measures were scraped and today payday loan lenders are able to run their businesses without any trouble in Alabama. The number of payday loan lending companies in Alabama exceeds 1000 and is growing with each passing year.
According to Alabama payday loan laws, a borrower is allowed no more than one payday loan at any one time at a given location. If the borrower is not able to repay the loan on time, he is allowed one rollover. Another thing that makes Alabama payday loan laws different from other states is that even though payday loan lending is absolutely legal, the only companies that are allowed to give payday loans are the check cashing companies.
Alabama payday loans charges and fees
Here is what you should know if you are thinking of requesting a payday loan in Alabama:
- The maximum loan amount in Alabama is $500
- The loan period of any payday loan given in Alabama must be between 10 and 31 days
- The maximum finance rate and fees in Alabama cannot exceed 17.50% and 3% a month after a default
- The maximum finance charge for a two-week $100 loan in Alabama is $17.50
- The maximum annual percentage rate for a two-week $100 loan in Alabama is 456.25%
- Borrowers are allowed one rollover
- The length of the “cooling-off period” in Alabama is the next business day after repayment of 2 continuous loans
Payday loan lending companies in Alabama can charge one NSF fee of $30 in case there is no money in your linked account or if a payment fails. Fees for an attorney can go up to 15% of the check amount.
In Alabama, lending companies do not have the right to threaten you with any criminal action unless a check is returned in case of a closed account.
Payday loans eligibility and application requirements in Alabama
It is hard to imagine a more simple loan service than Alabama payday loans. However, you still need to meet certain criteria to get a payday loan:
- You have to be at least 18 years old
- You are a permanent resident of the US or an American citizen
- It is obligatory that you have a steady source of income
To successfully complete your application, you will have to prepare the following information:
- Your social security number, name and date of birth
- Phone number, home and email address
- Details regarding your employment and income
Cities in Alabama where you can find payday loan lenders:
- Alex City
- Carbon Hill
- Phenix City
- Bay Minette
- Bayou La Batre
- Alexander City