A year, in addition to numerous other provisions regulating the issuance of such loans under HB 526, interest rates on title loans in Alabama would be capped at 120 percent. In a uncommon twist, name loan providers and consumer advocates (including Arise) both testified in opposition towards the bill.
The committee heard testimony but would not vote in February for a reform bill вЂ“ HB 326, sponsored by Rep. Patricia Todd, D-Birmingham вЂ“ supported by Arise as well as other people in the Alliance for Responsible Lending in Alabama (ARLA). The balance would cap title loan rates of interest at 36 percent per year.
By Stephen Stetson, policy analyst. Published April 20, 2016.
Payday lending reform gains momentum as second bill clears committee in Alabama Legislature
Payday lending reform proceeded to grab vapor as an Alabama House committee approved a proposal to reduce interest rates and limit the amount that payday borrowers can borrow each year wednesday. HB 297, sponsored by Rep. Danny Garrett, R-Trussville, now moves towards the House.