Payday Loans In Alabama
Same as in any other state, payday advance loans in AL are paid utmost attention by the state government.
- Alabama is one of the states to put an amount restriction on the loan amount. You cannot loan more than $500.00 at one time. That is the maximum. There is no limit on the number of loans you can have outstanding though. However, their subtotal cannot exceed $500.00.
- The loan would have to be repaid within 31 days. That is the state law. Any payday advance loan for a longer period of time is illegal.
- You wouldn't be able to get a payday loan for less than 10 days. That means that the lender cannot cash your check until 10 days have passed from the loan date. That's the minimum amount of time you can keep the money and not be charged for it.
- You would pay $17.50 for every $100 loaned over two weeks. That is also the maximum. You can be charged less, but you cannot be charged more. That translates into an annual interest rate of 456.25% (APR), which is of course really bad. It is still much better than overdrafting your bank account though.
- If the lender is not able to cash your check (insufficient funds for instance,) you cannot be charged more than 3% of the loan amount per month after default.
- Payday loans (AL) are also characterized by a relatively short cooling-off period. You can get a new loan the next business day after two continuous loans are repaid.
Payday loans (Alabama) can be received relatively easy and are quite widespread all throughout the state.
No Money To Repay The Loan?
The good news is that you couldn't be criminally prosecuted for not having the money to pay back. However, if your account is closed or does not exist, you could be prosecuted. The lender also has the right to charge you an additional fee if there is not enough money in your bank account for them to cash your check.
If you do have an active bank account, but you just happen not to have the money, you could ask for a repayment plan (available in AL) or get a rollover.
In Alabama, you are permitted one rollover, which is essentially a new loan to repay the existing one. Not all states permit rollovers, and getting one is generally a good thing, given that you have no money to repay existing AL payday loans. A rollover would then grant you access to more funds over a longer period of time. Rollover terms are usually specified during the registration process and may vary.
As for collection fees pertaining to Alabama payday loans, you cannot be responsible for anything other than court fees, one insufficient funds fee ($30.00) and a reasonable attorney's fee (no more than 15% of the check amount.)
Payday loans in Alabama, same as in any other state, are really risky. The average default rate is somewhere around 5%, meaning that 1 in every 20 people having taken a payday loan out cannot repay it.
Alabama payday loans are a quite widespread financing option, though you should remember that getting one can get you into trouble. And if you find yourself not able to repay one, it is going to be real hard for you to get back where you started.