Rural communities across the southern United States have been particularly troubled with the aspects of globalization that make agriculture less lucrative. States like Alabama have long since seen the glory days of the cotton plantations fade, which means that a sizable portion of the population are in need of work and money. Payday loans have quickly become a way for citizens to fill income gaps, but these are only temporary fixes for problems that are far more serious. Some of the new Alabama payday loan laws are great for protecting citizens, but there are others that are unique and open to interpretation. You must make the decision for yourself whether or not the Alabama payday loan laws actually protect you or not.
Terms and Loans by Alabama Payday Loan Laws
As with many states, Alabama has set terms and loan amounts that lenders are allowed to offer the borrower. The laws in Alabama are about on average with the rest of the nation and is actually quite similar to the majority. The state only allows $500 payday loans to be given out to borrowers in order to reduce the impacts when they cannot pay loans. However, one difference is the minimum and maximum term difference that makes borrowing more flexible. Borrowers have between 10 – 31 days to get the loan finished, which gives a flexibility that helps both the consumer and the lender.
Still, the rate under Alabama payday loan laws is quite good compared to others. The maximum charge is 17.5% on a loan of $100, which is higher than some, but quite low compared with Tennessee and some other states nearby.
Licensing and Alabama Payday Loan Laws
Another key indicator of the protection afforded to consumers is the licensing aspect that any state requires for lenders. Online lenders are especially required to get the proper licensing information in order or else they cannot legally operate in the state. The state of Alabama has legally licensed “CashCentral,” “CheckCity,” and “ChecknGo” in order to make sure that these companies follow specific guidelines and restrictions.
If you are trying to get an online loan from another site then you must realize they are not following Alabama payday loan laws and this is therefore illegal. Make sure that you are protecting yourself from predatory lenders that are not licensed in the state that you are living so that you do not have extremely high fees.
