Title loans

Gregory F. Maxwell / Wikimedia Commons

The city of Montgomery is enacting a temporary ban on new business licenses for payday lending companies.

The 90-day moratorium approved by the City Council on Tuesday also includes businesses that let consumers pawn their car titles.

Alabama cities including Birmingham and Tuscaloosa have enacted similar moratoriums.

Short-term lenders have been controversial among Alabama lawmakers for several years. The companies include title loans, payday loans and check-cashing businesses.

blog.al.com

An Alabama House Committee has approved a bill that would regulate the issuing of title loans, while allowing most of the title loan businesses to continue operating.

The House Financial Services Committee approved the bill known as the Alabama Title Loan Act Wednesday on a voice vote with only one vote against the proposed legislation. The bill now goes to the full House for debate.