Payday and title 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 that can trap too many 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. Payday loans can carry interest rates up to 456 percent APR in Alabama, and auto title loans can carry rates up to 300 percent APR under state law.

The following resources highlight the dangers of high-cost lending for Alabama consumers and examine reform measures that are protecting residents of other states:

A plan for payday lending reform by ACPP and Alabama Appleseed

A plan for auto title lending reform by ACPP and Alabama Appleseed

ACPP fact sheet on high-cost lending (2010)

ACPP issue brief on payday and title lending (2015)

SB 91: A step in the right direction for Alabama borrowers (2016)

The new proposed federal payday lending rules are a good start, but they need to be even stronger (2016)

SB 284 offers Alabama consumers protections from high-cost loans and moves lending reform forward (2017)

Payday lending reform: Ending a debt trap in Alabama (2018)

Bad finance leads to bad romance!

Join us for a National Day of Action!

Hundreds from across the Birmingham region will gather on Valentine's Day to call for changes to predatory loans that victimize working Alabamians. Connect with like-minded advocates at the YWCA Central Alabama on Feb. 14th at 11:30 a.m. to hear more about the devastation these loans have caused for our neighbors in Birmingham and lend your voice in the fight against abusive lending practices.

YWCA Gymnasium

309 23rd St. N., Birmingham

Thurs., Feb. 14, 11:30 a.m. - 1 p.m.

Lunch provided -- Walk-ins are welcome, but RSVPs will help us plan:

RSVP by Feb. 11 to Jacob Smith -- This email address is being protected from spambots. You need JavaScript enabled to view it. or (205) 322-9922 x 306

Responding as Issues Arise

In addition to our primary policy areas, ACPP conducts research on related topics as prompted by pending legislation, member concerns or emerging policy trends.

View our fact sheets and reports on additional topics here.

ALERT: IDA bill moves to House

SB 295 -- the IDA bill -- passed the Senate and now moves to the House. Will your representative stand up for low-income workers? Individual development accounts (IDAs) are tools that help qualifying workers build basic assets -- through education, home ownership and entrepreneurship -- and break the chains of poverty. Use the link below to get your representative on board! Urge him or her to support SB 295.

Click here to send your message.

Montgomery AL Non-Profit Website Design by BWS Internet Marketing Services