Predatory lending reform resources
On busy highways and run-down streets across Alabama, you can't miss them -- big, bright signs promising easy money. From payday loans to title pawns, Alabamians face a dizzying array of credit services designed to trap consumers in financial quicksand.
Most states have laws against usury, or excessive interest. Alabama's Small Loan Act caps the interest rate on small, short-term loans at 3 percent a month, or an annual percentage rate (APR) of 36 percent. But laws covering payday lenders pemit certain kinds of loans at APRs of more than 10 times that limit.
The following resources highlight the dangers of predatory lending for Alabama consumers and offer reform measures that are protecting residents of other states: