Payday Lenders Issue 2 Million Loans In Alabama

MONTGOMERY, Ala. (AP) – Alabamians took out two million payday loans in the last year.

The state Banking Department on Wednesday presented information captured by a state database to members of the Alabama Consumer Protection Task Force.

The numbers also suggest many payday borrowers are repeat borrowers with almost one-quarter million people accounting for those two million loans.

Alabama began the database in 2015 to record payday loan transactions and enforce existing limits on how much people could borrow at one time.

The average loan was $326 and people paid an average fee of $56 to borrow the money.