Ala. legislators want to tighten purse strings on payday lenders - WAFF-TV: News, Weather and Sports for Huntsville, AL

Ala. legislators want to tighten purse strings on payday lenders

The bill restricts a consumer from taking out more than one loan over 30 days and caps the amount a lender can issue. (Source: WAFF) The bill restricts a consumer from taking out more than one loan over 30 days and caps the amount a lender can issue. (Source: WAFF)
MONTGOMERY, AL (WAFF) -

Payday lenders have found healthy bottom lines in Alabama, and now the President Barack Obama is stepping in. 

On Thursday, the President will travel to Birmingham to discuss the importance of emergency credit and controls to help curb debt. 

There's also a new bill filed in the Alabama legislature that calls for major reforms to the payday lending industry.

Senate Bill 110 calls for the maximum amount a payday lender can advance to a consumer be set at $500. 

The bill restricts a consumer from taking out more than one loan over a 30 day period, and also address repayment and other fees associated with payday lending.

DOCUMENTS: Read the bill (pdf format)

Senator Arthur Orr, Republican, District 3, sponsored the legislation and supplied the following statement: 

"My bill is in the middle of the road, and based on Colorado's model that has been successful. It lengthens loan terms to moderate the rate, unlike other bills that try to cap the rate." 

The Payday Lending industry is also a contributor to Alabama legislators' campaigns. 

According to a website called FollowTheMoney, the payday and title loan special interest groups gave $231,750 in 2014 to various campaigns.

Copyright 2015 WAFF. All rights reserved.
  • NewsMore>>

  • Amber Alert canceled for Pickens County boy

    Amber Alert canceled for Pickens County boy

    Saturday, March 25 2017 6:31 PM EDT2017-03-25 22:31:56 GMT

    Alabama Law Enforcement Agency has CANCELLED the Amber Alert for 11-month-old Christian Clay Perkins. 

    More >>

    Alabama Law Enforcement Agency has CANCELLED the Amber Alert for 11-month-old Christian Clay Perkins. 

    More >>
  • David: Showers and storms ongoing across the Valley

    David: Showers and storms ongoing across the Valley

    Saturday, March 25 2017 5:50 PM EDT2017-03-25 21:50:37 GMT

    Showers and storms will be ongoing across the Valley this evening. The most widespread rain will be over northeastern AL, but additional scattered storms will track into the Shoals from the west. That round of stormy weather will head east with time and should be out of the Valley after midnight. The threat for severe storms is low, but a few strong storms are possible. 

    More >>

    Showers and storms will be ongoing across the Valley this evening. The most widespread rain will be over northeastern AL, but additional scattered storms will track into the Shoals from the west. That round of stormy weather will head east with time and should be out of the Valley after midnight. The threat for severe storms is low, but a few strong storms are possible. 

    More >>
  • New details released in Guntersville double shooting

    New details released in Guntersville double shooting

    Saturday, March 25 2017 2:07 PM EDT2017-03-25 18:07:30 GMT
    Guntersville police say two people were shot at this mobile home area on Edmonds Road. (Source: WAFF)Guntersville police say two people were shot at this mobile home area on Edmonds Road. (Source: WAFF)

    The Guntersville Police Department have released news details on a double shooting late Friday afternoon that left one man dead.

    The incident occurred at approximately 5:30 p.m., when police from multiple law enforcement agencies responded to a 911 call reporting two people had been shot on Edmonds Road.

    More >>

    The Guntersville Police Department have released news details on a double shooting late Friday afternoon that left one man dead.

    The incident occurred at approximately 5:30 p.m., when police from multiple law enforcement agencies responded to a 911 call reporting two people had been shot on Edmonds Road.

    More >>
Powered by Frankly