Alabama Alpha Cash Advance Laws and Regulations

In the state of Alabama, several laws and regulations have been instituted to protect consumers and maintain uniform compliance to Alabama’s lending standards. While Alabama joins many other states in providing strong usury laws for small private loans, court decisions in 2002 declared that payday loans could not to be categorized the same way as small private loans. This has allowed lenders to enjoy more flexibility in their lending practices and has helped usher in the expansion of payday loan sources in the state. The following lists all requirements that specifically apply to payday loans.

Here are some specific Alabama regulations, to protect consumers from predatory lending in the payday loan industry:

  • Maximum Payday Loan Term31 days
  • Maximum Finance Charges and Fees17.5% interest per $100, plus $10 origination fee, plus 3% interest to accrue after initial loan period
  • Maximum Loan Amount$500
  • Number of RolloversOne
  • Outstanding Loans Allowed at OnceOne per lender
  • Cool-Off Period24 hours, but only after second payday loan and only if they were paid in full
  • Payment PlanVoluntary payment plan of 4 equal monthly installments of entire loan balance plus all fees
  • Collection Fees$30 NSF Fee
  • Presentment LimitOne
  • Private Right of ActionCivil
  • Military ProtectionN/A
  • PenaltiesArbitration and attorney fees


Alabama Code § 5-18A-1 et seq.

Alabama Deferred Presentment Services Act, Title 5, Chapter 18A