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Sub: #1 Alabama Supreme Court Decision 2005
Replied on 07-27-2006, 04:25 PM
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I just found this:

Quote:
'Payday loans' ruled usury, therefore illegal
Tuesday, November 22, 2005
Russell Hubbard, News staff writer, Birmingham News
Payday lenders who lent money from 1998 to 2003 did so illegally because they charged
usurious interest rates, the Alabama Supreme Court has ruled.
The state's highest court, ruling on a 3-year-old appeal, said Friday that payday loans
made during that time frame were subject to restrictions of the Alabama Small Loan Act.
Payday lenders - who front money to customers for a fee and a hold a postdated personal
check as security - have for many years said that the law capping interest rates charged by
lenders didn't apply to them.
Now, the court has toppled that argument. That raises the possibility that customers who
got loans from 1998 and 2003 might be able to sue for damages stemming from the
usurious interest.
"One question has been answered conclusively," said Mike Skotnicki, a lawyer who has
worked the case for years on behalf of consumers. "The Alabama Supreme Court has
ruled that these interest rates were usurious."
hsy.com/documents/Payday_Loans_Ruled_usury_000.pdf

I expect similar decisions to be made throughout the country.

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Sub: #2
Replied on 07-27-2006, 04:37 PM
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I thought of attaching the FDIC links also if it helps in understanding better about payday loans for some people.

http://www.fdic.gov/regulations/safety/payday/

http://www.fdic.gov/news/news/financ.../fil1405a.html

Sub: #3
Replied on 07-30-2006, 08:27 AM
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Polly,

Interesting little article. Thanks for posting this. I hope more states follow what Alabama has been able to do

Anonymous
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Sub: #4
Replied on 08-07-2006, 02:54 PM
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This is all great information. Does anyone know what exactly a person should do now with this information to get this vicious cycle stopped? My paycheck cant take it anymore!

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Send message to IncredibleHelp
Sub: #5
Replied on 08-07-2006, 04:45 PM
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payday loan slave

If you have now known the state laws within which the lenders can charge interests on the principal loan amount, send letters to them explaining the state laws and explain your payment arrangements. Everything should be done as per the laws till the loan is paid off by you.



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Send message to PDLFREE
Sub: #6
Replied on 10-22-2006, 06:30 AM
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Good information, thanks and for the one who posted "My paycheck cant take it anymore" close your bank account (open a new one for legit debts) and NEVER ever give your acct information out to anyone, use money orders to pay the PDL jerks



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Sub: #7 The upcoming Alabama election has an affect on the PDL world
Replied on 10-22-2006, 10:34 AM
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Quote:
Republican state Senate candidate Don Stout called it "ridiculous and hypocritical" for state Sen. Lowell Barron to lead a reform effort against payday loan operations … when Barron himself owned more than 20 outlets until recently.

Barron, D-Fyffe, responded that Stout should stop the personal attacks and focus more on his own plans if elected, according to The Huntsville Times.

Stout leveled his charges Wednesday in a news conference at the Madison County Republican headquarters. The Senate district encompasses Jackson and DeKalb counties and eastern portions of Madison County.


He said Barron should "come clean" by proving that he's completely out of the quick payday advance business. Stout challenged Barron to reimburse borrowers the high interest he charged while in the business.

"Since he's had a Damascus road experience, apparently, I think he ought to return the money he's taken from them over the years," said Stout.

Barron, meanwhile, issued a statement restating his reform plan and asking Stout to back off.

"My opponent's entire campaign has been negative personal attacks on me with no plan for what he would do as senator," Barron said. "My plan to reform the payday loan industry is public, and I am proud that it has been endorsed by newspapers as well as leading consumer advocacy groups in the state."

Payday loan back story: The news conference followed Barron's announcement last week that he had sold his interest in faxless payday loan businesses and now plans to reform the industry.

Barron is drafting bills that would outlaw so-called rollover loans that can quickly rack up hefty interest charges, ban payday advance providers from operating within five miles of a military base, forbid lenders from garnishing any military wages, and prohibit the seizure of personal property on bad loans made by quick-cash outlets.





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