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November 19, 2005

Alabama payday loan stores can be sued

Alabama consumers who took payday loans prior to 2003, can sue the payday loan company that gave them the cash. "The Supreme Court ruled that payday loans were covered by Alabama's law regulating small loans until the Legislature passed a law in 2003 to regulate the payday loans separately."

This Small Loan law limits the yearly interest rate, that consumers are charged. Of course, the fees charged by the payday loan companies amounted to much higher yearly interest rate than this limit. Hence the ground to sue.

In 2003, the Alabama payday loans fell under a separate law that, I would assume, permits higher yearly interest rates. So the consumers could be legally ripped off.

It is proclaimed as a huge victory for the Alabamians by some attorneys who represent those Alabamians, ... of course, it is a victory ... for these attorneys, ... I wonder, to what yearly interest rate their legal fees would translate ...

Posted in Payday Loans at November 19, 2005 11:31 PM

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