Payday Advance Alabama
If you live in Alabama and need quick cash, you may want to acquire a payday advance loan while they are readily available. Legislators are in the process of proposing a bill that would severely restrict Alabama payday advance guidelines.
Why Payday Loans?
Payday loans are a fast and convenient means of obtaining the cash you need in order to meet emergency financial situations that occur prior to receiving your paycheck. Such temporary cash loans allow you fix car problems, pay bills before they're overdue, pay rent, get necessary medical attention, and more. Then, when payday arrives, this quick cash amount is easily paid and life can move on without a hitch.
Current Alabama Payday Advance Loan Guidelines
Currently, Alabama payday loan offices are allowed to operate within the state as long as they are properly licensed. Maximum payday advances are in the amount of $500 and are provided on a 10 to 31 day loan term agreement. The initial loan carries up to a 17.5% finance rate and included fees with a rate of three percent per month should the loan move into default.
The APR for a 14-day loan of $100 in Alabama is 456.25%. One rollover extension is allowed. However, a rollover fee is normally applied and added to the payday loan amount. There is, also, currently no limit to the number of payday loans you can obtain, but the maximum for each loan is $500.
One Non-sufficient funds (NSF) fee of $30 can be charged should funds not be available on the agreed upon date. Court costs and up to 15% for Reasonable Attorney's Fees on the total amount can be sought should court action be required to retrieve the loan amount.
Proposed Alabama Legislation for Restricting Payday and Title Loans
As of March 2013, Alabama legislators are seeking to push through bills that would restrict both payday and title loans. Currently, payday loans can charge up to 456.25% annual interest while title loans can charge up to 300% APR.
The proposed legislation would cap the interest rate on payday and title loans to a maximum of 36% APR. This legislation would follow suit with numerous other states that have passed similar laws.
Such payday loan regulating legislation is designed to protect borrowers from predatory lending practices, which is good for the consumer. However, most short-term lending companies argue that they cannot remain in business with such limited interest and fee amounts and, therefore, are forced to either shut down or move their business strictly to the Internet. Such action can make it difficult for those seeking payday loans to obtain them easily since any state lender or online lender would have to strictly adhere to the state's laws governing such loans.
Requirements for Obtaining a Payday Loan
When seeking to obtain Alabama payday loans, first ensure that the companies you want to deal with are licensed. Then determine the amount of cash advance you desire, up to $500 (keep in mind that it is best to only borrow what you absolutely need and can comfortably repay upon your next payday). Check on interest rates and all related fees before committing, since these can vary from company to company.
You will be required to present a form of personal ID, as well as proof of employment (usually your previous paystubs). An agreement is signed and a post-dated check is submitted to the lender for the loan amount plus any interest and fees. Checking or savings account info is supplied so that the loan amount can be deposited upon approval. Approval for a payday loan is usually within 24 hours.
Where to Obtain More Alabama Payday Loan Information
If you are reading this and considering a payday advance Alabama loan, you may want to seek out further information or want to check on any proposed legal changes. You can acquire additional information on Alabama laws and guidelines by contacting:
Alabama Banking Department
P.O. Box 4600
Montgomery AL 36103