Alabama payday loan laws: Debt limits, and loan tenure

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Payday loan laws in Alabama

Status: Legal (5-18A-1 et seq.)

For Lenders

Lending specifications:

  • Maximum loan amount: $500
  • Loan tenure: 10-31 days
  • Fees and finance charges: 17.50%; 3%/month after default
  • Finance charge on a 14-day $100 loan: $17.50
  • APR on 14-day $100 loan: 456.25%

Collection restrictions:

  • Collection fees: A $30 NSF fee; court costs; attorney fees up to 15% of the face amount of check.
  • Criminal procedures: Prohibited (unless check returned due to closed account)
For Borrowers

Debt limits:

  • Maximum no. of outstanding loans at a time: NA (maximum loan amount at a time: $500)
  • Rollovers allowed: One (rollover)
  • Cooling-off phase: Next business day once two continuous loans are repaid
  • Repayment plan: Available

Complaint cell:

  • Regulator: Alabama Banking Department
  • Address: P.O. Box 4600 Montgomery AL 36103
  • Phone: (334) 242-3452
  • Fax: (334) 353-5961
  • Regulatory contact: Arlene Baldwin, Consumer Services Specialist, Bureau of Loans.
  • Website:

Updated on:

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