Payday Lender Bill Stalls
The Alabama state legislature is still busy at work. But, just like the way the winter weather has stalled many of our local activities, one important piece of legislation is being delayed and has been sent to a subcommittee for further approval. The payday loan regulation bill that would provide tighter restrictions on payday lenders has hit a speed bump. It’s a move that upset the bill’s sponsor, Representative Patricia Todd of Birmingham. The bill seeks to create a database to enforce limits on the number of loans people can have within a year and would limit the annual interest rate to thirty-six percent. Payday lenders oppose the bill. They say customers choose those loans over others types of financial transactions to avoid late fees and bank overdraft charges. According to a recent report by the Center for Responsible Lending, Alabama has the second highest concentration of payday lenders in the nation, with more than one-thousand payday loan storefronts per one-hundred-thousand residents.