46,000 Payday Loans Per Week In Alabama
A new state database shows that Alabamians are borrowing millions of dollars every day from payday lending stores. The database created by the Alabama Department of Banking found that people took out 462,209 loans over a 10-week period. A total of $146 million was borrowed, or an average of about $14 million each week. The state created the database to enforce an existing law that limits people to borrowing no more than $500 at a time. Shay Farley, a lawyer with Alabama Appleseed, called the numbers "shocking." She said the high rates on the loans trap people in a cycle of debt. An industry representative said the numbers show that people need the service. He said lenders close as states push additional regulation. Alabama has about 900 payday lenders.