The state of Alabama has their own laws regarding this type of loans, which borrowers should be well aware of when they are considering to apply for loan. This article talk about the loan limits, options, refinancing and other issues about Alabama payday loans.
Payday Loan Details
In Alabama, the maximum loan amount per borrower is $400, payable in 6 days to 31 days, as maximum rate. The loan finance charge is 10% of the check, plus $10 and $5 for ID card. So for example, if you borrow $100 for two weeks the finance charge will come to about $22.22, which the APR is 579 percent.
Payday Loan Limits
The state of Alabama, allow only one loan or transaction at a time, per location. The state do not allow rollovers, so payday loans must be paid as they are not renewable or possible to consolidate in case the borrower could not pay back the loan in time. Additionally, unlike with other state, the payday loans is legal in Alabama, but only check cashing companies are given authority to provide this type of service.
Payday Loan Collection
When a loan not paid on time, there are applicable fees added into the collections. The fee amount, fees for insufficient funds in case the checks returned to the company and the court cost as well as attorney fees. By the way, no criminal action according to the state of Alabaman permitted against a payday loan borrower if the loan is not settled, but when the check was dishonored because the borrower closed the account purposely on which the loan was written then a payday lender always can press charges.
Payday loans are wonderful solution for someone with money problem and have bad credit score, but not paying the loan on time can make it difficult even more for borrower as the finances charges are very high. So, before applying for a loan make sure you apply when you have no other recourse and pay the loan on time.Share