The southern United States is notorious for their religious nature. It is a part of the culture that is as deeply ingrained as anything else in that region of the world. This religious nature often makes it difficult for people to do anything that might be construed as against God or Christianity in any way.
Unfortunately for the payday loan industry, religious people in Alabama have found something seriously wrong with the way that they are doing business. According to many in Presbyterian congregations, the payday loan industry is extorting people in ways that Jesus would have never approved of.
Alabama Payday Loan Bills
Two specific bills have made their way through legislative branches in Alabama with an effort of limiting the effect of payday loan industries. Most of these industries are able to make a lot of money off of individuals who are trying to get by on monthly bills and end up trapped in a cycle of debt. Some situations even include a $100 debt requiring $17.50 in interest. A loan of $1000 is therefore $175 for the interest rate, which is extortion according to many.
Some Presbyterian ministers from Alabama have come from across the state to the capital in order to protest the extortion of the payday loan industry. Ross Reddick is one such man who came from his Sylacauga, Alabama home to spend time protesting what is going on in the state.
Interest rates of 400% are not rare and it is commonplace for people to file for bankruptcy after getting into a large cycle of debt that consists of many years of work.
Changing the Law Isn’t So Easy
Unfortunately, the two bills that were supposed to make such a great change for the people of Alabama was watered down considerably before it ever made it anywhere in committee. The bills were both changed to avoid some of the problems that the payday loan industry has with these stipulations and regulations that inhibit their ability to make money.
For a lot of people, this is a sad state of affairs. They were so close to changing the law in their favor in Alabama, but things have not gone their way for a long time. It seems that people will not be able to count on their state government to protect them so long as the interest groups have the power to make changes in legislation. Just bare in mind if you must get a payday loan make sure you are able to pay it back quickly. As well, never get another loan to pay off a loan. Most people get into the trap even further by getting more loans to pay off their other debt.
