Payday financing has for ages been controversial. These high-interest loans can be a trap for consumersвЂ“typically, the consumers who can least afford it while payday loan providers bill themselves as an important safety net for people in need of quick cash to cover unexpected expenses.
Based on data held in the Alabama Department of Banking, in 2019, Alabamians lent about $563.6 million from loan providers in Alabama and took away 1.6 million payday advances. These loans produced $98.4 million in charges towards the pay day loan lenders. A bill sponsored by Sen. Arthur Orr, R-Decatur allowing borrowers as much as 30 times to repay a quick payday loan as opposed to reduced durations of as low as 10 times ended up being killed by the Alabama Senate Banking and Insurance Committee by an 8-6 vote in 2020 february.