A bill designed to put more regulations on payday loan companies has just been sent to the house sub committee and is looking like it will stay there for quite a while.
This is bad news for those who want to put more restrictions on these types of loans.
So many states are moving forward on protecting their residents against being exploited by incredible interest rates and traps to keep them in debt.
This is a set back in the eyes of Alabama residents.
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This bill would do several things.
It would limit payday loans to $500.00, interest rates to 36%, and limit the amount of loans a person can take out to six a year.
It would also require the loan companies to offer installment plans and require them to become licensed in the state of Alabama.
lastly, they would ban collectors from visiting clients homes to collect payments.
State by state more and more regulations are being put into place as legislators who truly care about the people who voted them into office write these bills and get them passed.
This bill stalled mainly because the legislators who fought it just happen to be backed by these companies in their election campaigns.
Hopefully, someday soon this kind of activity will soon be outlawed.
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