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)
No comments:
Post a Comment