Doesn’t matter if you live in a big or small region, life never feels pity for you or your conditions, and financial urgency can occur anytime. If we talk about the south-east region of the US, Alabama is a state where around 5 million people reside. And several people will definitely face money related issues as in other regions do as it’s also a face of survival. So to help netizens, the state always makes some plans and regulations such as loan facilities. Not only for good creditors but for all. That’s why in Alabama, payday loans are legal.
payday loans alabama
To borrow a loan, first, you have to be intelligent enough and gather all the information prior to applying for it. Payday loans are basically for your small but urgent purposes such as to buy something on an urgent notice, to pay any kind of bill, etc. It is for all without any discrimination among good and bad creditors because emergencies can occur to anyone. As there is no need for FICO scores, moreover, it’s an unsecured loan, that’s why the cost is also very high, which usually depends on the state laws. And according to Alabama’s regulations payday loans have the following edicts:
- The limit of borrowing amount is $500 or 25% of your monthly gross income, the lesser one among both, and no one can get more than that.
- The term of loan i.e. repayment time is fixed by the laws; minimum 10 days and maximum 31 days. Exact time always relies on a number of factors such as your salary date and amount.
- If you feel you can’t repay your loan on time, then you can ask your lender to renew the loan once but mind it, you’ll have to pay at least the interest amount, and on the principal amount, new interest will be charged. Though, as per the state laws, only one rollover is allowed.
- The finance fees can go up to 17.5 % per $100 along with an APR of around 456%. That’s why these loans are truly expensive.
- At a single time, you are not at all allowed to borrow second loan when you are already into debt of the first one.
What about the consumer contract?
You must have a photocopy of the loan agreement that you’ll sign to acknowledge the approval from the lender. As per the state laws, you have a right to ask if there is any hidden information that can harm you later. Or if there is any doubt in the understanding of contract details then ask your loan provider anything without hesitation. Even you have the authority to cancel the agreement even after signing it but for that, you have to follow the process and provide the written notice of rescinding which has to be sent before the working hours of the very next day.
There would be no cancellation charges, your lender can deduct so if you make your mind to take your decision back then you are free to do that.
According to the statutes of Alabama, all the rules are fit to both, in-person & online lenders. So, there are two major things that the loan provider must have:
- License must be there, otherwise, it would be taken as a violation of the law.
- There must not be any hidden detail that is important for the borrower.
Presently, in the state, payday loans don’t come under the ‘Small Loan Act’ which means, it’ a great chance for the lending firms to grow their business.
All in all, even if the cash advance is available in the state, you should always take it as a last choice and the reason is its highest cost that is enough to take you into debt. But if you use this chance with full intellect then it can act as a life-saver for you. Hence, search for the best-licensed loan provider by comparing the rates, terms, and costs, then only choose it. Stay safe and think twice, while making any decision.