Payday Loans in Alabama

Payday loans are legal in the state of Alabama and are governed by the laws of loans the detailed specifications of loans, limits, collection problems and more. A payday loan is a short term loan offered to the general public, no credit check or collateral required. The requirements for most payday loans are simply to be 18 years old, has a checking account open for use.

Payday loans Terms in Alabama

The maximum amount permitted to be taken from a loan company payday is $ 500 at a time. The loan can be taken from a minimum of 10 days, a maximum of 31. The maximum rate permitted to be charged by finance fees are $ 17.50, and 3 percent each month after the loan has been paid. For example, a $ 100 loan taken out for 14 days will have a finance charge of $ 17.50 to an APR of 456.25 percent.

Payday Loan Limits in Alabama

Only a payday loan can be taken at once, in a maximum of $ 500. In Alabama, a rollover is allowed on an emergency loan, also known as a. This is also sometimes known as a payment plan. If a loan can not be returned on the date designated by the company can extend the loan until next payday of the borrower and take only the finance fees applied to the first loan period.

Payday Loan Collection Limits in Alabama

If a payday loan is in collections in Alabama, once is not sufficient funds fee of $ 30 and court costs and up to 15 percent of attorney fees at a reasonable price can be charged to the borrower. Criminal action is prohibited for payday loans in arrears in this state. The exception to this rule is a collection agency may have against the borrower if the check is returned due to a closed account.