Payday financing has long been controversial. While cash advance providers bill themselves as an essential back-up for individuals in need of fast money to pay for unforeseen costs, these high-interest loans may be a trap for consumers–typically, the customers whom can least manage it.
Relating to data held during the Alabama Department of Banking, in 2019, Alabamians borrowed about $563.6 million from loan providers in Alabama and took down 1.6 million loans that are payday. These loans created $98.4 million in costs into the cash advance lenders. A bill sponsored by Sen. Arthur Orr, R-Decatur allowing borrowers as much as 30 times to settle an online payday loan in place of reduced periods of less than 10 days had been killed by the Alabama Senate Banking and Insurance Committee by an 8-6 vote in 2020 february.
This committee couldn’t have understood that in under two months following its vote, many Alabama families is dealing with a significant crisis that is financial towards the effects of COVID-19. Continue reading “New Cash Advance Protections Revoked by the buyer Financial Protection Board”