Alabama House Approves Payday Loan Database

By  | 

Montgomery, Ala.

The Alabama House of Representatives has voted to create a state database to enforce existing limits on payday loans.

Representatives approved the bill on a 93-1 vote Thursday. It now moves to the Alabama Senate.

Birmingham Rep. Patricia Todd called the creation of the database a good first step in the regulation of the payday loan industry.

Existing law says people can't have more than $500 out in loans out at one time. She said without a central database customers could go from lender to lender taking out multiple loans exceeding the cap. She says that traps people in a cycle of high-interest debt.

The bill approved by the House does not include interest rate caps that Todd had sought to place on the loans.

Comments are posted from viewers like you and do not always reflect the views of this station. powered by Disqus