Statewide payday loan database a good first step for Alabama consumers

Arise Citizens Policy Project executive director Kimble Forrister issued the following statement Thursday, Aug. 7, 2014, after a Montgomery circuit judges dismissal of a lawsuit against the state Banking Departments proposal to create a statewide common database of payday loans in Alabama:

“We’re excited about this weeks ruling. A statewide payday loan database will make it possible to enforce current limits on how much payday loan debt a borrower can have at one time. That will help protect vulnerable borrowers from racking up thousands of dollars in high-interest debt, and it’ll help slow the drain of millions of dollars from our state’s retail economy.

Alabama still needs to reduce interest rates on payday loans. It’s outrageous that our state condones an interest rate of 456 percent APR on these loans. But a statewide database is a good first step toward protecting borrowers and communities from the high costs of high-interest loans.”

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