Category: Alabama PDL Laws


Banning of New Payday Loan Stores in Birmingham, Alabama

I was kayaking in the back-bay waters of my Newport Beach neighborhood this past weekend. I couldn’t help but be overwhelmed by the multitude of yogurt shops, pizza parlors and sushi restaurants. Signs, awnings, neon… just plain ugly. These places need to be outlawed! I long for the days when I could paddle over to my nearest buggy whip builder or my local blacksmith shop.

Absurd? What will you do when your livelihood is threatened by narrow minded politicians who don’t “get” your customer nor understand why small dollar loans are in sufficient demand to support friendly competition?

Which brings me to the following AP article regarding the banning of new payday loan stores in Birmingham, Alabama.

Birmingham extends ban on new payday loan stores By | Associated Press

BIRMINGHAM, Ala. (AP) New payday loan businesses won’t be allowed to open in Birmingham until at least next June.

The city council on Tuesday extended a ban on the businesses until June 19, according to a report ( ) by WBRC-TV.

Officials picked that date because it comes after the end of the Legislature’s regular session. They want lawmakers to address the number of payday loan businesses in their city and across Alabama during the session.

An industry lobbyist criticized the move. Max Woods of Borrow Smart America said the decision hurts customers and small businesses. He also said it doesn’t address problems with banks.

City Council President Pro Tem Steven Hoyt said he has no problem calling out banks too if given the name of one that takes advantage of customers.

Hey! You cash 4 gold guys, you hair salons, you burger joints better watch out!! Your days may be numbered.

Read the AP Piece here: AP Alabama Payday Loans

Jer – Trihouse Consulting – Lenders, Conduits, Consultants… 702-208-6736

Who needs a $50K capital infusion for their car title loan business?


Alabama-Regions to Lower Cost of Payday Loans

Alabama-Regions to Lower Cost of Payday Loans

“Ah… the capitalistic system is working nicely. We see consumer rates coming down for payday type small dollar loans. We witness the entry of sovereign tribes as direct lenders adding increased competition to the B&C’s. We hear about offshore lenders lacking access to the U.S. consumer financial data. APR’s on these payday loan products are falling as demand is increasing (Refer to DFG Global Latest financial reporting).

Pennsylvania may very soon reestablish the payday loan product. Other states will certainly follow. They don’t want their constituents financial data residing in Panama or Costa Rica.

Regulators are coming full circle and returning to embrace the payday loan product when full disclosure of all rates and fees are implemented.

And finally, it’s “all about the money, stupid.” Last year 14,000,000 U.s.residences got a payday loan. Generally speaking these consumers wanted to borrow a few hundred bucks fast with little hassles. As jobs pickup, more consumers will qualify for and receive these microloans.

Where will they spend this money? On things that create jobs, taxes, services, housing, education… Read American Banker Article Here

Jer – Trihouse Consulting