A bill designed to make sure Alabamians don't take out multiple payday loans has cleared its first vote in the Alabama Legislature.
The House Financial Service Committee voted Wednesday to approve a bill that would set up a database of payday loans in the state Banking Department. Before a business could issue a new payday loan, it would have to check to make sure the customer wouldn't go over Alabama's limit of $500 for payday loans.
The bill's sponsor, Democratic Rep. Patricia Todd of Birmingham, says there is no way to enforce the $500 limit now and people take out new loans to pay off old loans.
Todd's bill is a compromise worked out with the payday loan industry. It does not lower interest rates on the short-term loans.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.