Get Familiar With Alabama Payday Loans Legislation

Alabama is the 30th largest state by area and 24th most populated region of United States bordered by Tennessee to the North, Georgia to the East, Florida and Gulf of Mexico to the South, Mississippi to the West. From the American Civil War until World War II, Alabama like many other US states suffered from economic hardship because the State people was dependent on the income generated from agriculture only. Even today, Alabama is ranking 35th in the country for its economic performance so citizens are struggling to gain economic stability. Under such circumstances, facing unexpected financial situations is not a surprising. However, there are means to handle such matters.

Short Term Loans Alabama- Answer Financial Emergency Call With an Ease

The most popular financial aid that is serving citizens in the state by providing immediate funds is short term instant cash loans. By applying for these loans, a consumer can gain instant cash up to $1000. The application process is very simple and easy. Almost everyone can qualify for these loans as the basic eligibility criteria is very simple. One must be 18 year old or above US permanent resident. An applicant must mention valid address, email id, contact number and Social Security number in an online application form. The lender also asks for an active bank account number to perform electronic monetary transaction to practice safe procedures. Once the consumer submits application form with above mentioned details, he is assured to receive required cash within next 24 business hours. However, it is advised that the consumers must understand the laws and terms of this economic services before choosing it.

Payday Loans Alabama Regulations:

• Legal Status: Legal
• Interest Rate (APR): 456%*
• Maximum Loan Amount: $500
• Minimum Loan Term: 10 days
• Maximum Loan Term: 31 days
• Finance Charges: 17.5% of the amount advanced

If you study the history of payday loans in Alabama, you will come to know that in 1990s it was among 19 states involved in legislation procedure concerning small loans. The main concern was to set a usury cap for interest rates. However, in 2002 these measures were avoided and these days lending companies provide these loans at lenient terms.

Further, in order to operate this financial services in AL, both store front as well as online lenders have to abide to following rules:

• All lenders must acquire a License to be legit in the state.
• All lenders must disclose all the loan information (terms, interest, fees, repayment period) to the borrower before signing the loan agreement.

As per current scenario, small term loans in this states are not regulated under Small Loan Act.

Consumer Obligations for Legitimate Loan Processing

• Above all, the borrower must ensure himself that he must be capable of paying back the loan amount plus calculated interest amount on the decided date.
• If anyhow the consumer feels that he would not be able to pay back on the decided date then he must inform the lender on prior basis and ask for the rollover.
• In case the borrower is unable to repay on repayment date, one rollover is allowed.
• The state regulations also cooling-off period assuming that after the repayment of two continuous loans there should be a gap of one business day before lending the third loan.
• A maximum fee of $30 for non-sufficient funds (NSF) is established if the repayment terms are not met by consumer.
• Criminal actions against borrowers are generally prohibited in Alabama, however, they can be initiated in case the repayment check is bounced back due to insufficient funds in borrower’s account or any due to any other reason.

Abiding the above mentioned rules, if the applicants feel cheated then they can also file a complaint against a lender to Alabama State Banking Department.