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: https://www.bank.state.al.us/
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.
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