Rep. Patricia Todd speaks during the State home on Thursday in regards to the home passage of a bill developing a payday lending database. (Picture: AMANDA SOWARDS/ADVERTISER)
After couple of years of tireless tries to manage the cash advance industry, the Alabama House of Representatives passed a bill that could assist enforce a $500 loan optimum.
The legislation, sponsored by Rep. Patricia Todd, D-Birmingham, would mandate that hawaii Banking Department put up a central database to monitor loans in real-time. Two similar bills вЂ” the one that addresses payday financing and the one that addresses name loans вЂ” also are going through the Senate and House, but those bills include conditions to cap interest levels.
But because thereвЂ™s no chance to trace the loans, individuals can visit various lenders and remove numerous loans.
Todd stated the industryвЂ™s high interest levels trap its customers in rounds of financial obligation and force them to obtain brand new loans to pay for straight straight back existing ones.