Rep. Patricia Todd speaks during the State home on Thursday concerning the House passage of a bill developing a lending database that is payday. (Picture: AMANDA SOWARDS/ADVERTISER)
The Alabama House of Representatives passed a bill that would help enforce a $500 loan maximum after two years of tireless attempts to regulate the payday loan industry.
The legislation, sponsored by Rep. Patricia Todd, D-Birmingham, would mandate that their state Banking Department put up a central database to monitor loans in real-time. Two similar bills вЂ” the one that addresses lending that is payday one which addresses name loans вЂ” additionally are going through the Senate and home, but those bills consist of provisions to cap rates of interest.
But because thereвЂ™s not a way to trace the loans, individuals can head to different loan providers and sign up for loans that are multiple.
Todd stated the industryвЂ™s high interest levels trap its clients in cycles of financial obligation and force them to obtain brand brand brand new loans to cover right straight right back existing ones. […]