Alabama Payday Loans
Alabama Payday Loans
Alabama payday loans State Information
Legal Status: Legal Citation:
Ala. Code 5-18A-1 et seq.
Loan Terms:
Maximum Alabama payday loans 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)
Where to Complain, Get Information:
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
Online Resources:
FAQs for Deferred Presentment Services Act
If You are contemplating Alabama payday loans due to some financial emergency, then it might be useful for you to know the current payday loan laws. The following legal information is relevant for Alabama residents:
1. Are payday loans legal in Alabama?
Yes, payday loans are legal in Alabama.
2. What is the maximum amount of Alabama payday loans?
You can borrow up to $500 as payday loan from a financial institution in Alabama.
3. What can be the term of a payday loan in Alabama?
Payday loans can be taken for a term of 10-31 days in Alabama.
4. What is the maximum interest rate that can be charged by a financial institution in Alabama on payday loans?
The interest rate on Alabama payday loans cannot cross 17.5% in Alabama. However, you may have to pay an additional interest charge of 3% per month, if you default on the loan. Also, there can be a finance charge of $17.50 on a loan of $100 taken for 14 days. The annual percentage rate or APR for such a loan can be as high as 456.25%.
5. What can be the maximum number of outstanding payday loans at one time?
Payday loan laws in Alabama do not specify anything regarding the maximum number of outstanding payday loans. But the aggregate loan amount should not cross $500.
6. Are payday loan rollovers allowed in Alabama?
Rollover means taking a new loan to pay off the original loan. A single rollover is permitted in Alabama. This means that you will be allowed to take a new payday loan to repay an existing loan only once.
7. Is it mandatory to have a “cooling-off” period between successive payday loans?
Yes. Payday loan laws in Alabama require a cooling-off period of two days, if you take two continuous payday loans.
8. Am I eligible for a repayment plan, if I am facing financial trouble?
Yes. It is legally possible to approach the financial institution for a repayment plan, if you are facing economic hardship.
9. Is there any collection limit on payday loans in Alabama?
Yes. The collection fees are restricted to a one time Non Sufficient Funds (NSF) fee of $30, court fees, and attorney fees, which can be up to 15% of the payday loan (amount mentioned on the check).
10. Can a financial institution take criminal action against me, if I default on the loan?
Usually, it cannot. However, it is a criminal offense, if your check returns due to closed account.
11. Who regulates payday loan laws in Alabama?
Alabama Banking Department regulates the payday loan laws in Alabama. You can get in touch with them at:
P.O. Box 4600 Montgomery AL 36103.
Phone: (334) 242-3452
Fax: (334) 353-5961
Website: http://www.bank.state.al.us/
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