Alabama Small Dollar Loan Laws

Alabama Small Dollar Loan Laws:

We are not lawyers, nor are we giving legal advice. We are, however, here to show you the laws in Alabama surrounding car title loans, also known as small dollar loans. Yes, obtaining a car title loan is legal for you in Alabama. Below are the specifics of your laws.

Here’s a summary of the key points of Alabama’s small dollar loan laws, also known as the Small Loan Act:

Maximum loan amount: $1,500

Interest rates:

• 3% per month on the first $200 of the unpaid balance.
• 2% per month on the remaining balance over $200.

Alternative rates:

• 10% acquisition charge of the loan amount.
• $12 per month installment handling charge for loans up to $300.
• $23-$26 per month installment handling charge for loans above $300 (depending on amount).

Additional regulations:

• Prepayment penalties are only allowed for loans of $2,000 or more involving real estate or with specific creditor exemptions.
• Unlicensed lenders cannot operate in Alabama and are subject to penalties.

Resources:

• Alabama Small Loan Act: https://banking.alabama.gov/bol/
• Consumer Loans on the Internet: https://banking.alabama.gov/
• Alabama consumer credit act “mini code”: https://banking.alabama.gov/bol/

Please note: This is not legal or financial advice. These are just the facts as of February 2024. View our legal disclaimer. Also our Legal Information.

Alabama Car Title Loans