Laws to regulate high rates of short-term loans and title loans were recently presented in an effort to keep people from being trapped into paying off debts with high interests.
Rep. Patricia Todd, D-Birmingham, who introduced the bills, said a cap of 36 percent will be put on payday loans and title loan businesses and limits will be made regarding what can be done with repossessed properties. Supporters of the bills said short-term loans trap low-income earners into a debt cycle that can have serious effects on their finances. On the other hand, opponents of the bills said the 36 percent interest rate is reasonable to maintain business, claiming short-term loans require higher interest rates.
The bills have drawn support from those seeking to address the problem of payday loans’ high interest rates that trap low income earners.
If you are in debt and are wondering what your options are, such as applying for a payday loan, consider speaking with a lawyer from Greenway Law about your debt negotiation options. Learn more about how to address your debt by calling (205) 324-4000.