- Associated Press - Thursday, August 7, 2014

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 (https://on.mgmadv.com/1kMaEIC ) 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.

___

Information from: Montgomery Advertiser, https://www.montgomeryadvertiser.com

LOAD COMMENTS ()

 

Click to Read More

Click to Hide