Governor Bentley Announces New Measure To Protect Borrowers From Excessive Debt
Governor Robert Bentley announced a new consumer protection measure today aimed at helping people avoid excessive amounts of debt from payday loans.
The measure will also help lenders by providing a method to ensure they are complying with state law. Under the Alabama Deferred Presentment Services Act, payday lenders are not to issue loans to customers who currently have more than 500 dollars in existing payday loan debt.
However, there is currently no uniform, statewide database to ensure compliance with the act. To address the issue the Governor is calling for the creation of a centralized payday loan database in Alabama.
Bentley hopes to have the new database operational by January 2014.