If you take a closer look to the history of payday loans in Alabama, you will learn that in 1999 it was among 19 states involved in legislation procedure concerning small loans. The point was to set a usury cap for interest rates on such loans. However, in 2002 these measures were avoided and nowadays lending companies are able to provide short-term payday loans to the benefit of themselves and the borrowers.
Payday loans in Alabama are not at the present moment under the regulation of the Small Loan Act. Such conditions have become very favorable for many old companies to expand and for a number of new ones to appear. At the present moment payday lending is absolutely legal in Alabama.
Payday loans are named so because they are supposes to be repaid with the next paycheck of a borrower in due time. This is a very good opportunity for people with temporary financial difficulties to solve their problems very conveniently and without any fuss. Generally, in Alabama there are about 1,000 lending companies that work with payday loans and their number increases progressively.
Alabama state law allows payday lending in the amount not exceeding $500. A borrower is able to take such loan for a period from 10 to 31 days. Finance charges and fees should not exceed 17.50% for every $100 borrowed for a fortnight. APR equals 456.25% for a loan of $100 given for a period of two weeks.
Alabama state law also allows one payday loan at a time at a given location. In case the borrower is unable to repay in due time, one rollover is allowed. There is also cooling-off period presupposing that after the repayment of two continuous loans there should be made a break of one business day. In case of necessity a repayment plan can be offered to a borrower. One of the peculiarities of payday lending in Alabama is that, though the whole business is absolutely legal, only check cashing companies are allowed to give payday loans.
More information about Payday Loans in Alabama: http://www.bank.state.al.us/