Ala. legislators want to tighten purse strings on payday lenders
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.
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.
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