Ala. Officials Mull Database To Track Payday Loans

The Montgomery City Council has extended a moratorium on issuing new business licenses for payday lending companies.
Jason Comely

State officials say they might decide next month whether to create a database tracking payday loans.

Alabama bureau of loans supervisor Scott Corscadden says that a public comment period on the proposal to create the database closed this week with 250 people weighing in.

Corscadden says officials will review the comments and make a recommendation to, who will make a final decision. Corscadden says the review should be done by early September.

Alabama law bars consumers from having more than $500 in payday loans. However, lenders currently use between five to seven databases to track loan distribution.

A bill aimed at setting a 36 percent annual interest rate on payday loans failed in the last legislative session.

  • Facebook
  • Twitter
  • LinkedIn
  • Email