Alabama Payday Loan Laws Details
The data provided here is for general informational purposes and should not be used as legal reference. If you have questions regarding Alabama payday loan laws contact the Alabama Banking Department.
Payday loans are legal in Alabama (see Alabama Payday Loans or Alabama Installment Loans to compare fees and requirements for individual lenders).
| Feature | Specification |
|---|---|
| Amount (max) | $500 |
| Rates or Fees (max) | 17.50%; 3%/month after default |
| Term Limitations | 10-31 days |
In Alabama, one rollover is permitted. The cooling period between loans is the next business day after 2 continuous loans repaid. Alabama requires extended repayment plans.
For example, in Alabama the rates and fees on a 14 day, $100 loan are:
| Terms | Amount |
|---|---|
| Loan Amount | $100 |
| Fees | $17.50 |
| APR | 456.25% |
Alabama also defines regulations around collections. If available, the table below lists the fees lenders are permitted to charge if the loan is not repaid and/or whether a lender can threaten use of or use criminal action if a borrower is unable to repay a loan.
| Feature | Specification |
|---|---|
| Collection Fees | One $30 NSF fee; Court Costs; Reasonable Attorney's Fees up to 15% of face amount of check |
| Criminal Action | Prohibited (Unless check returned due to closed account) |
May not to exceed 17.5 percent of the amount advanced.