Judge Throws Out Suit Targeting Loan Database
MONTGOMERY, Ala. (AP) – A state judge has thrown out a lawsuit from payday lenders looking to challenge regulations requiring a central database to track payday loans.
The Montgomery Advertiser reports a Montgomery judge ruled that the State Banking Department didn’t exceed its authority last year by ordering a $500 cap on payday loans and a database to make sure consumers didn’t have multiple loans out for more than that amount at one time.
Payday loans are short-term loans have annual interest rates that can hit 456 percent. Payday lenders say they serve a market that banks don’t want to serve, and the costs are cheaper than bouncing a check.
Southern Poverty Law Center attorney Sara Zampierin says the ruling will help address predatory lending in the state and hold lenders accountable.
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