Thursday, April 30, 2009

Alabama Free No Fax Payday Loans

Alabama Payday loan laws. Alabama Payday loan legislation.

Alabama has specific payday advance laws. The permitted fee is

17.5% of the amount advanced. The permitted time period is a

minimum of 10 days and a maximum of 31 days.

The maximum amount of the payday loan allowable is $500.00. No

more than one rollover is allowed.

For a thorough discussion of the payday loan industry and access

to our payday loan training materials, we recommend you proceed

to PaydayLoanIndustry.com



Payday loan Businesses Launch Offensive

More than 200 title loan and cash advance businesses in Alabama

have started an advertising and education campaign with the goal

of reversing negative press about their lending practices.

Member stores, who established the Alabama Council for Fair

Lending, announced a campaign they call "Borrow Smart Alabama".

It includes television and radio commercials, along with in-

store education discussing consumer financial education.

"Our industry has been mislabeled and misunderstood by advocacy

groups who say they want to help low-income residents of our

state," said Charles Hunter, spokesman for the council, in a

news release.

The Alabama Council said they agree to a code that promises

fairness, honesty and integrity in all practices.

Hunter said their businesses help many people "get back on their

feet" to re-establish their credit and without their loans, they

would "have nowhere else to turn in a financial emergency."

"We intend for this campaign to communicate the truth about our

industry and to bring our stores together to reaffirm our

commitment to our customers," he said.

"Our industry has been mislabeled and misunderstood by advocacy

groups who say they want to help low income residents of our

state. The truth is our services help many of our customers get

back on their feet or reestablish their credit." Charles Hunter,

Spokesman for the Alabama Council for Fair Lending

The association is publishing video testimonials and written

statements from customers who have used short terms loans.

The Council for Fair Lending, a trade association of Alabama-

based payday loan and title loan lenders, launched a statewide

campaign today to encourage consumers to use the more than 200

member stores in Alabama that have committed to educating

borrowers and helping them work toward financial stability.

The campaign, Borrow Smart Alabama, will include statewide

television and radio commercials along with in-store customer

education.

The Council for Fair Lending was established in May of 2007 to

enforce "accountability within the industry as well as a need to

better educate Alabama residents and members of the media about

the important services short term lenders provide to their

customers."

"Our industry has been mislabeled and misunderstood by advocacy

groups who say they want to help low income residents of our

state," said Charles Hunter, spokesman for the Council. "The

truth is our services help many of our customers get back on

their feet or reestablish their credit. Without us, they would

have nowhere else to turn in a financial emergency. We intend

for this campaign to communicate the truth about our industry

and to bring our stores together to reaffirm our commitment to

our customers."

All members of the Council for Fair Lending have agreed to a

Code of Fair Lending to which stores must adhere. This code

promises fairness, honesty and integrity in all business

practices:

We, the members of this association, in order to best serve the

citizens of this state, recognize and adopt the following

operating principles:

* All customers will be treated with concern in an honest &

professional manner.
* All customers will be fully informed of their borrowing rights

& obligations.
* We will promote the responsible use of credit and strive to

educate our customers on their financial choices.
* Our employees will treat all customers with courtesy, fairness

& integrity and will respond to any complaint about our service

promptly and directly.
* We will protect our customer’s rights to privacy with respect

to personal information.
* We will honor and respect members of active military & their

dependents. The Department of Defense’s regulations on loans

will be strictly adhered to.
* We will comply with city, county, state and federal laws and

keep our customers informed of the regulations that govern our

actions.
* We will exercise compassion to cash advance customers when

warranted by offering repayment options before proceeding with

civil collections. Title customers whose vehicles are

repossessed will be offered options to retrieve their vehicles.
* We will offer reasonably affordable loans to customers on

fixed incomes.
* We will not allow customers to roll over a loan unless

authorized by state law.
* We will give our customers the right to rescind, at no cost, a

new loan on or before the close of the next business day.
* We will prominently display the Borrow Smart seal in all of

our stores and adhere to the Borrow Smart Alabama Code of

Customer Service.


The association is publishing video testimonials and written

statements from customers who have used short terms loans.

Customers were asked to submit comments on their experience with

Borrow Smart member stores in June and July. More than 70

customers offered comments, all sharing positive experiences

with short term lending.

Stores participating in Borrow Smart Alabama and adhering to the

Code of Ethics can be identified by the Borrow Smart seal on

their doors and inside the stores. Brochures available in the

stores will educate consumers on smart lending practices. The

Borrow Smart Code of Fair Lending is available only at Borrow

Smart approved stores.

"We strongly believe that short term lending is the best choice

for some consumers, but we also know that there are sometimes

alternatives that would provide smarter solutions," Hunter said.

"We want to make sure consumers are coming to Borrow Smart

stores where they will get all the information they need to make

the right financial choice."

The Council for Fair Lending represents 200 member stores in the

state of Alabama.

For a thorough discussion of the payday loan industry and access

to our no fax payday loan training materials, we recommend you

proceed to PaydayLoanIndustry.com

Citation:
Ala. Code § 5-18A-1 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 10-31 days
Maximum Finance Rate and Fees: 17.50%; 3%/month after default
Finance Charge for 14-day $100 loan: $17.50
APR for 14-day $100 loan: 456.25%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: None (max $

amount of loans at one time: $500)
Rollovers Permitted: One (rollover)
Cooling-off Period: Next business day after 2 continuous loans

repaid
Repayment Plan: Yes

Collection Limits:
Collection Fees: One $30 NSF fee; Court Costs; Reasonable

Attorney's Fees up to 15% of face amount of check
Criminal Action: Prohibited (Unless check returned due to closed

account)