Payday Loan Businesses Sue to Block State Database


By Alabama News Network

Payday loan businesses are suing to block a new loan database planned by the Alabama Department of Banking.


Several payday loan businesses, including Cash Mart, Rapid Cash and Quick Cash, filed the suit in Montgomery County Circuit Court and asked Circuit Judge Truman Hobbs to stop the department from creating the database by regulation.


Gov. Robert Bentley announced last week the Department of Banking would start a database of payday loans to make sure lenders don't issue more than the $500 limit allowed by state law.


The payday loan businesses argue that the state is trying to create the database by regulation after the Legislature rejected a bill to do it last spring. The suit also contends the database is discriminatory because it doesn't apply to banks and online lenders.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Add a comment


Comment: 1000 Characters Left

WNCF and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. Comments are posted on site immediately and without station moderation. If you feel a comment is inappropriate you may flag it for review. For guidelines on flagging comments see our Terms & Conditions. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.