Alabama Payday Loan Laws and Regulations

1. Per loan, the maximum amount that can be loaned is $500.
2. Only one payday loan can be given to a consumer at a time.
3. A consumer has allowance to rollover only one. A rollover is basically a situation when a consumer takes a new payday loan in order to clear the older one.
4. The loan amount must be cleared anywhere between 10 to 31 days.
5. A cooling off period of a day is also given. This is basically a time frame that is given to people in order to bring their loan application to a halt and decide further, or if the approval for the loan has already arrived, they can pay the loan earlier than was mentioned in the contract.
6. The finance charge can not be greater than 17.5% of the total loan amount.
7. The Annual Percentage Rate to be charged for every $100 is 456.25%.

Responsibility of the borrower in Alabama

A payday loan is a form of debt that needs to be repaid, along with any interest or extra charges that are levied on the principal amount, the details of which are given in the loan agreement. There is also another stipulation; the fact that payday lenders can charge very high interest because according to statistics, the repayment ratio of payday borrowers isn't very high. Simply put, if more people who take payday loans begin to pay them back on time, the interest rates charged by payday lenders are likely to fall steeply, as the risks are going to be fall for the lenders. Hence, it can be seen that being a responsible borrower is beneficial to both parties; the borrower himself as well as the lender.

If you wish to file a complaint or validate the licensing credentials of your lender, the following website can be used:

Alabama Banking Department
P.O. Box 4600
Montgomery, AL 36103
Phone: (334) 242-3452
Fax: (334) 242-3500
Website: www.bank.state.al.us

Interesting Facts About Alabama

Alabama is usually referred to as “Heart of Dixie” but this is not the official nickname for the state. The state got its name from the fact that it is located in the center of the southern US. There are other aliases too regarding this state like “Yellowhammer state” and “cotton state”. Like every other nickname, these names also originate from certain events that took place in the history of Alabama. It is ironic that the state was named Cotton state a hundred years ago when cotton began to die and profits were very sparse. After some time, the name lost its place too. The state is known as Yellowhammer state because of the yellow cloth of the confederate’s army. It is famous for crops such as cotton, apples and peanuts. It is the country’s biggest producer of peanuts. It is also rich in natural mineral resources such as steel and iron
Read on to find out more interesting and fun facts about this southern state:

  1. “Stars fell on Alabama” is a very popular phrase often spoken whenever this state is mentioned. It is because on a dark night in 2002, a picturesque shower of meteors lit up the whole dark sky. It seemed as if the heavens were raining stars in the region.
  2. The law of this state is rather strict and detailed. A very interesting law in this state is that it is illegal for a person to place table salt on railroad tracks. The violation of this law can lead to death sentence. The law was enforced in 2013.
  3. The world’s biggest and only monument that is devoted to an insect is known as the Boll Weevil Monument in Enterprise, Alabama. It was built in the recognition of harmful insects which motivated farmers to grow more lucrative crops like peanuts instead of the traditional cotton fields. This played a very important role in saving the country’s economy.
  4. Huntsville is the home for George C. Marshall Space flight center. Huntsville is also known as the Rocket Capital of the World. It is in this region of Huntsville where Saturn V rocket was made. It was this rocket that not only made it possible for man to reach moon but also to land on it.
  5. Birmingham is the largest city of Alabama and it is on top of the list of cities in terms of economy and national growth. The state also holds top position in the list of cities of South.
  6. In 1969, Marble become the official rock of the state and is found throughout the central Alabama. The marble from this state is today used in buildings all over the United States of America. It was also used in the construction of U.S Supreme Court.
  7. Square dance, which is also the state’s official folk dance, was brought to North America by European immigrants. The dance consists of couples and was originated in seventeen century Europe. 
  8. We all know that today Christmas is considered as a legal, official holiday in the whole nation. It was this state that, in 1836, announced that Christmas was a legal holiday.
  9. The favorite sport played in this state by far is Football and it is best represented by the teams of university of Alabama, Crimson tide and Auburn University, Tigers team. It is interesting to know that the rivalry between crimson tide and tigers began when they played their first game back in 1893.
  10. Yellowhammer, which is also the nickname of the state, is also the name of the official bird of Alabama. It was chosen to remember the states confederate soldiers because of the peculiar attachments found on their uniform.
  11. The transfer of mail from all over the country and from across the world to the state is done through a boat in Mongolia Springs. This is a very unique occurrence in United States and it is a tradition that has been transferred from one generation to another.
  12. The Vulcan is the world’s largest cast iron statue. It weighs 120,000 pounds and is 56 feet tall in its height. It is found in Birmingham.

The people of Alabama are hospitable folk, grounded in tradition and welcoming to all visitors. You’ll have a great time in this part of the country. There are so many places to visit here and such great sights that the memories of your trip shall remain with you for the rest of your life.

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