MONTGOMERY, Ala.—An Alabama House committee has approved a payday lending bill that offers reforms. This new bill that was approved, still SB 91, has been significantly amended and watered down from its original version, the League of Southeastern CUs & Affiliates reported.
The League has supported SB 91.
The bill the Financial Services committee approved on Wednesday offers an APR cap of 180%, does not offer installment payments, sets repayment time between 28 and 45 days, sets a cap on the amount of loans a customer can take out —$6,000 a year, or 12 $500 loans per year — though no customer could have more than $500 out in payday loans at any one time.
The league said it would like to see payday reforms be more meaningful, but that it also supports any reform to the payday lending industry.
The next step for the bill is to pass the full House and Senate.
“This might be tough with session only having three more days,” the league stated.