Payday Loan Businesses Sue to Block State Database
Payday loan businesses are suing to block a new loan database planned by the Alabama Department of Banking.
Several payday loan businesses, including Cash Mart, Rapid Cash and Quick Cash, filed the suit in Montgomery County Circuit Court and asked Circuit Judge Truman Hobbs to stop the department from creating the database by regulation.
Gov. Robert Bentley announced last week the Department of Banking would start a database of payday loans to make sure lenders don't issue more than the $500 limit allowed by state law.
The payday loan businesses argue that the state is trying to create the database by regulation after the Legislature rejected a bill to do it last spring. The suit also contends the database is discriminatory because it doesn't apply to banks and online lenders.
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