Payday Loans in Alabama
Overview
Payday loans, also known as cash advances, are short-term loans that provide borrowers with quick access to cash to cover unexpected expenses or emergencies. In Alabama, payday loans are legal and regulated by the Alabama State Banking Department.
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Regulations
Alabama has specific regulations in place to protect borrowers from predatory lending practices. The Alabama Deferred Presentment Services Act (Act 2003-359) governs payday loans and sets the following regulations:
- The maximum loan amount is $500
- The maximum loan term is 31 days
- The maximum finance charge is 17.5% of the loan amount
- Borrowers may not have more than one outstanding loan at a time
- Lenders must provide a written agreement that includes all loan terms and conditions
- Lenders must also provide a written notice outlining the borrower's rights and responsibilities
Requirements
To be eligible for a payday loan in Alabama, borrowers must meet the following requirements:
- Be at least 19 years old
- Have a valid government-issued ID
- Have a steady source of income
- Have an active checking account
Online Lending
Online payday lending is also legal in Alabama, but borrowers must be cautious of unscrupulous lenders. Borrowers should only work with licensed lenders and should carefully review all loan terms and conditions before agreeing to a loan.
Alternatives to Payday Loans
If you need cash but do not want to take out a payday loan, there are other options available, including:
- Personal loans
- Credit card cash advances
- Emergency assistance programs
- Borrowing from friends or family
Official Regulations
The Alabama Deferred Presentment Services Act (Act 2003-359) regulates payday lending in Alabama. This act was last updated on May 20, 2019. The full text of the act can be found on the Alabama State Legislature website.
Alabama State Banking Department
The Alabama State Banking Department is responsible for regulating and licensing payday lenders in Alabama. If you have a complaint or concern about a payday lender, you can contact the Alabama State Banking Department at:
- Phone: (334) 242-3452
- Email: [email protected]
- Address: P.O. Box 4600 Montgomery, AL 36103-4600
Payday Loan Comparison Table
Here is a table that compares payday loans from some of the top lenders in Alabama:
| Lender |
Loan Amount |
Loan Term |
APR |
| MoneyKey |
$100 to $1,500 |
Up to 32 days |
200% to 1,140% |
| Check Into Cash |
$50 to $1,000 |
Up to 31 days |
456.25% |
| Speedy Cash |
$50 to $500 |
Up to 31 days |
456.25% |
| Advance America |
$100 to $500 |
Up to 31 days |
456.25% |
Note that the loan amounts, loan terms, and APRs listed above are for illustrative purposes only and may vary depending on the lender, the borrower's creditworthiness, and other factors. It's important to carefully review all loan terms and conditions before agreeing to a loan.
