Alabama Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Alabama and what amounts, interest rates and repayment terms are set by the state's Legislation.

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wyoming payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Legal
Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

30 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

780.00%
Average APR

Average APR

The average percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

260.00%
Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

$30 (or 20% per month)
Legal Payday Loans Online for Alabama residents

Make yourself safe by studying the laws, rules and regulations concerning Payday Loans and other short-term cash advance in Alabama. Apply for a Payday Loan online on a strong note.

Compare top legit Payday Lenders in Alabama:

LendYou will help you get the cash you need when you need it. You can apply for Payday Loans, Installment Loans or Personal Loans, etc. Compare the lenders and get matched with the best one.

  • MIN Loan Amount: $100
  • MAX Loan Amount: $35000
  • Terms: Varied
  • Rates and fees: Starting at 4.99% APR
  • Turnaround Time: 1 business day
  • $100 - $1000 Payday Loans
  • $1000 - $5000 Installment Loans
  • $5000 - $35000 Personal Loans
  • 18 years of age or older
  • U.S. citizenship
  • Valid checking or savings account with direct deposit
  • Minimum regular income of $1,000 per month
  • Not be a regular or reserve member of the Air Force, Army, Coast Guard, Marine Corps or Navy (or be a dependent of someone who is,) serving on active duty under a call or order that does not specify a period of 30 days or fewer.
Pros
  • High up to $15,000 loan amounts. 
  • Minimal restrictions on how you can use your loan.
  • No collateral or guarantor.
  • Bad credit is OK. 
Cons
  • It's not a direct lender, so you'll need to clarify rates and terms with the company you are matched with. 

 

Check Into Cash offers Payday Loans, Title Loans, Personal Installment Loans and other money products at affordable rates with convenient repayment. 

  • MIN Loan Amount: $50
  • MAX Loan Amount: $3000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day
  • Payday Loans
  • Online Payday Loans
  • Title Loans
  • Installment Loans
  • Online Installment Loans
  • Line of Credit
  • Flex Loans
  • Other Services
  • Check Cashing
  • Bill Pay
  • Western Union 
  • U.S. Money Card
  • Cell Phone Top-Ups
  • Sell Us Your Gift Cards For Cash
  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $50.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

Greenlight Cash created an online platform to connect consumers like you with reliable lenders across the country. They partner with a large network of professionals so you get a chance to work with one of them and meet the challenge of improving your financial situation in the most effective way. Once you tap submit, you get one step closer to receiving the funds.

  • Payday Loans
  • Installment Loans
  • Personal Loans
  • be a legal U.S. resident
  • be at least 18 years old
  • have a stable source of income
  • be currently employed
  • have an active bank account
Pros
  • Unrivaled flexibility and accessibility.
  • Predictable monthly payments

  • Quick and simplified borrowing process

  • Any credit is welcome
Cons
  • Not a direct lender.

 

GoGoPaydayLoans offers Payday Loans at affordable rates with convenient repayment terms. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $1000
  • Terms: Vary by state.
  • Rates and fees: 261% to 782% APR
  • Turnaround Time: 1 business day

$100 - $1000 Payday Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
  • 21+ years old (19+ in Alabama)
  • Social Security number (for Indiana residents only)
Pros
  • You can get even as low as $100.
  • Quick funding on the next business day.
  • Money can be used for any personal needs.
Cons
  • Not available in every state.
  • APR can be more than 153.73% depending on your state.
  • High late payment fees.

 

PaydayloansUSA.online offers Payday Loans, Installment Loans, Personal Loans and other money products at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $35000
  • Terms: Vary by state.
  • Rates and fees: 4.99% to 1386% APR
  • Turnaround Time: 1 business day
  • Payday Loans
  • Installment Loans
  • Personal Loans
  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • More than 300 direct lenders.
  • High approval rate even for bad credit Payday Loans.
  • Online Payday cash advance with no collateral.
  • 24 / 7 online service.
  • No hard credit check Payday Loans.
Cons
  • High interest rates.
  • Available not in all the states.
  • Not many financial products offered.

 

Indyloan.com offers Personal Loans online at affordable rates with convenient repayment. 

  • MIN Loan Amount: $100
  • MAX Loan Amount: $5000
  • Terms: Vary by state
  • Rates and fees: Varied
  • Turnaround Time: 1 - 2 business day

Personal Loans

  • Active checking account open for 90+ days
  • US citizen or permanent resident
  • Personal and work phone number
  • Valid email address
Pros
  • Quick - no driving, waiting, faxing, paperwork.
  • High approval rate even for bad credit borrowers.
  • Online Payday cash advance with no collateral or co-signer.
  • 24 / 7 online service.
Cons
  • High interest rates.
  • Available not in all the states.
  • Only loans up to $5000 are available.

 

Table of Contents:

Are Payday Loans legal in Alabama?

Alabama Payday Loan Terms and Amounts

Alabama Payday Loans online laws

Alabama Payday Loans interest rates, fees and other finance charges

Alabama Payday Loans direct lenders regulations

Alabama Payday Loans consumer information

Legitimate Payday Loans online with NO credit check in Alabama

Does Alabama law allow Payday Loans for bad credit borrowers?

Legit Payday Loans in Alabama collection practices

Alabama Payday Loans news  - latest changes

Alabama Payday Loans historical background

Alabama Payday Loan alternatives

Are Payday Loans Legal in Alabama?

Short-term Payday Loans are legal in the state of Alabama and are mostly regulated through Ala. Code §§ 5-18A-1 et seq.. The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.

Read more: Payday Loans in Alabama

To see if you're eligible for a Payday Loan in Alabama check out the lenders' requirements:

  • Steady income
  • At least 19 years old
  • US  residence
  • an active bank account
  • a valid phone number, or e-mail

Alabama allows maximum 31 day(s) Payday Loan amount. It should be repaid within 10-31 days as you get your next paycheck. Earlier payments don’t contemplate any additional fees. The maximum charge for a 14-day $100 loan cannot exceed $17.50. taking into account the average APR of 300.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Alabama Payday Loan Terms and Amounts

Alabama residents who are eligible for a Payday Loan can get $500 cash advance per contract and have no more than 1.00 outstanding loans at a time. The repayment term is capped by minimum 10 day(s) and maximum 31 day(s).

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Alabama.

If $500 is not enough, there are always other options to receive the necessary funds in Alabama:

  • unsecured Installment Loans,
  • bad credit Personal Loans,
  • Title Loans,
  • Check Cashing,
  • Pawn Shops, etc.

Alabama Payday Loans online laws

Cash advances (payday loans) from both storefront and online lenders are legal in the state of Alabama pursuant to the The State Banking Department Bureau of Loans, P.O. Box 4600 Montgomery AL 36103. Tel. (334) 242-3452, specifically provided for in Alabama Sec. 5-18A-1. Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn't affect your credit score. 

Alabama Payday Loans interest rates, fees and other finance charges

The main part of payday loan payment is mostly made up of the interest rate, or APR. The average APR that may be charged for short-term cash advance in Alabama is 300.00%. It means that if you borrow $100 Payday Laon for 14 days the finance charges will be 17.5% of the amount advanced.

Besides, the total cost of a Payday Loan includes some additional fees. Alabama lending rules allow to charge:

  • One $30 NSF fee;
  • Court Costs;
  • Reasonable Attorney's Fees up to 15% of face amount of check 

The law obligates Alabama Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Alabama Payday Loans direct lenders regulations

According to Alabama payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.  

The main rules regarding Payday loan lenders in Alabama are:

  • Essential state license.
  • Complete disclosure of all the information concerning the loan such as its repayment terms, rates, fees, etc.
  • Besides, Alabama direct lending companies are recommended to educate the customers on the possible issues related to payday loans. Borrowers must be aware of possible risks, default penalties, other consequences of short-term loans and their alternatives.
  • Alabama laws prohibit offensive collecting practices connected with the due loans. Criminal action threats are banned and the lender is required to send a mail notification before starting any legal proceedings against expired contracts.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Alabama state law.

Alabama Payday Loans consumer information

Besides amounts, rates, and fees, consumers must be also well aware of other details of Payday Loans in Alabama. They include the availability and number of rollovers, extensions and repayment plans, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions 1 rollover or repayment plan
Cooling-off period 1 business day
NSF fee $30
Other default penalties 3% a month from the default date
Criminal actions Prohibited

Look for more detailed information on the official Alabama state regulator website - http://www.banking.alabama.gov.

Legitimate Payday Loans Online with NO credit check in Alabama

Looking for a legal Payday Loan with No credit check in Alabama? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history Alabama law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Alabama Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Alabama law allow Payday Loans for bad credit borrowers?

The average credit score in Alabama is 660, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for a Payday Loan in Alabama. 

  • First of all, There're a lot of legit direct lenders in Alabama providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out bad credit Installment Loans, or bad credit Personal Loans.

Legit Payday Loans in Alabama collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Alabama direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Alabama it’s $30.

Besides there are other default penalties in Alabama such as 3% a month from the default date.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Alabama. If the lender is going to refer to the court or perform any other collection measures, he must notify you in writing at first. If you don’t respond within 15 days, a lawsuit against you may be filed. It may lead to 3% a month from the default date.

If you think that your payday lender violates the Alabama Payday Loans law, you may file a written complaint with The State Banking Department Bureau of Loans, P.O. Box 4600 Montgomery AL 36103. Tel. (334) 242-3452. The supervisor from that office interviews witnesses reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges

Alabama Payday Loans news  - latest changes

The latest attempt to impose changes on Payday Loan lenders was made in February 2019. Alabama lawmakers from both parties and advocacy groups spoke today in support of a bill to give payday loan customers more time to pay off loans, a change they said would help protect financially fragile borrowers from spirals of debt.

The bill would set the minimum term at 30 days, effectively reducing the maximum APR by more than half. But it would also reduce profits for lenders by about 20% to 25% and some payday loan stores would close and customers would turn to online lenders. So, the bill to extend payday loan terms to 30 days passed the Senate last year but failed to win committee approval in the House. 

The latest report on Alabama Payday Loans highlights.pdf

  • Under state law, payday lenders can charge up to 456 percent APR.
  • More than 1.7 million payday loans were taken out in Alabama in 2018. Averaged out, that’s more than 32,000 payday loans per week.
  • More than 200,000 Alabamians take out a payday loan every year.
  • Every year, Alabama borrowers pay more than $100 million in payday loan fees that do not decrease the principal amount owed.
  • About 85 percent of payday loan borrowers in Alabama take out multiple loans in a year.
  • 16 states and the District of Columbia have passed APR rate caps that keep pay­day lenders out, meaning that 95 million Americans live in communities without pay­day lending. Follow-up studies have shown that access to credit was not significantly impacted for former payday borrowers in these states, who have turned to other means of credit at lower cost.
  • More than half of Alabamians support banning payday lending (52.5 percent).
  • 73.6 percent of Alabamians support a 36 percent APR cap on payday loans.
  • 74.1 percent of Alabamians support extending payday loan terms to 30 days.

Alabama Payday Loans historical background

Alabama Payday Loans historical background
1994 Payday loans now could be also covered by the Alabama Small Loan Act, the Mini-Code, and became the subject to Truth-in-Lending Disclosure.
1998 The “Alabama State Banking Department unseccessfully issued 150 cease and desist orders” to lenders violating the interest rate cap.
2002 An alternative rate schedule and increase of the allowable loans to the average 190% APR was set by lenders.
2003 The APR at 456% was set by the Deferred Presentment Act.
2013 The Alabama State Banking Department designed the database system to prevent lenders from over-lending which led to their claim for defence.
June 2, 2016 A Payday Loan Rule was offered by the CFPB.
2018 SB 138. which was supposed to set 30 Days repayment plan passed the Senate but was rejected bythe House Financial Services committee.
February 20, 2019 Alabama state senator Arthur Orr has brought legislation in Montgomery designed to curb predatory Alabama payday loans. The bill would limit interest rates on payday loans in Alabama and allow borrowers a 30-day repayment term.

Alabama Payday Loan alternatives

If you're looking for instant cash advance in Alabama but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for an Alabama Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Take out a Car Title Loan if you own a vehicle to use as collateral.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Consider borrowing from a bank or credit union. In Alabama there're at least 3 Federal Credit Unions offering Payday Alternative Loans: Florence Federal Credit Union, Redstone Federal Credit Union and Five Star Federal Credit Union. Their work is regulated by the National Credit Union Administration (NCUA), which limits the loan amounts to $200 - $1,000 with terms up to six months and APRs capped at 28%.
  • Qualify for one of Federal or Alabama government assistance programs: Supplemental Nutrition Assistance Program (SNAP), Medicaid, Temporary Assistance for Needy Families, Child Care Services, Low-Income High Energy Assistance Program.

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