Alabama Database of Payday Loans Still on Hold

A database to track payday loans in Alabama remains on hold because of a court fight.

The Montgomery Advertiser (http://on.mgmadv.com/1t5tfxQ ) reports the system isn’t being implemented while the loan industry tries to block it.

The database is aimed at improving enforcement of a $500 limit on the amount of payday loans a person can have. But payday lenders sued Alabama’s Banking Department to block creation of the system last year.

A judge in Montgomery ruled against the industry in August and the industry appealed.

Banking Department attorney Elizabeth Bressler says the state hopes to have a final decision soon.

The state signed a contract with a Florida company to build the database, and legislators approve the deal earlier this month. But the work remains on hold because of the litigation.

 

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