Senate committee vote for '30 days to pay' was a good first step on payday lending reform in Alabama

Arise Citizens’ Policy Project executive director Kimble Forrister issued the following statement Thursday, Feb. 15, 2018, in response to a Senate committee’s approval of a bill that would give Alabama borrowers 30 days to repay payday loans:

“Today’s Senate committee vote in favor of the ‘30 days to pay’ bill was a big win for consumers and communities across Alabama. This common-sense bill would ease financial pressure on struggling families and put payday loans on the same repayment cycle as other debts, such as mortgages, utilities and credit cards.

“This bill would help thousands of Alabamians avoid falling into a debt trap. By increasing the amount of time that borrowers have to repay, it effectively would cut the maximum annual percentage rate on payday loans in half, from 456 percent to about 220 percent. That would boost Alabama’s economy by reducing the amount of fees that are taken out of our communities every year to benefit out-of-state corporations.

“The ‘30 days to pay’ bill is simple but important legislation that would be good for consumers, good for our state’s economy and good for Alabama. We thank Senator Arthur Orr for sponsoring it, the Senate Banking and Insurance Committee for approving it, and the many members of Alabama Arise and the Alliance for Responsible Lending in Alabama who came to the State House to promote it. We urge the Senate to pass this bill in a timely fashion, and for House members to do the same.”

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