- Associated Press - Wednesday, April 1, 2015

MONTGOMERY, Ala. (AP) - An Alabama Senate Committee has approved what a senator described as a “middle path” approach to regulating payday lenders. 

The Senate Finance Committee approved the bill Wednesday on an 11-1 vote. 

The bill is patterned after Colorado regulations and gives borrowers up to six months to repay the loans instead of just 10-14 days. 

Bill sponsor Sen. Arthur Orr says the longer window reduces what borrowers pay.

Orr said borrowers are often unable to repay a payday loan within two weeks and accumulate large fees by rolling over the loan, or taking out subsequent loans to pay off the first.

Alabama Arise policy analyst Stephen Stetson says the bill is a step in the right direction. Stetson says an interest rate cap would be a more substantive solution.

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