Regulator Details

Alabama Banking Department

P.O. Box 4600
Montgomery, AL 36103
Phone: (334) 242-3452
Fax: (334) 353-5961

Alabama Payday Loan Laws

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Alabama Payday Loan Laws Details

The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Alabama payday loan laws contact the Alabama Banking Department.

Payday loans are legal in Alabama (see Alabama Payday Loans or Alabama Installment Loans to compare fees and requirements for individual lenders).

Feature Specification
Amount (max) $500
Rates or Fees (max) 17.50%; 3%/month after default
Term Limitations 10-31 days
General Loan Terms

In Alabama, one rollover is permitted. The cooling period between loans is the next business day after 2 continuous loans repaid. Alabama requires extended repayment plans.

For example, in Alabama the rates and fees on a 14 day, $100 loan are:

Terms Amount
Loan Amount $100
Fees $17.50
APR 456.25%
Sample Loan Terms

Alabama also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.

Feature Specification
Collection Fees One $30 NSF fee; Court Costs; Reasonable Attorney's Fees up to 15% of face amount of check
Criminal Action Prohibited (Unless check returned due to closed account)
Regulations on Collections
Finally, a more detailed excerpt from Alabama's statutes on finance charges is listed below. In general the tables above summarize this.

May not to exceed 17.5 percent of the amount advanced.

Citation: Ala. Code Sections 5-18A-1 et seq.