Montgomery County Circuit Judge Truman Hobbs, ruling last month in favor of the Alabama State Banking Department, dismissed a lawsuit filed by several payday lenders in 2013. Judge Hobbs’ order stated “there was no conflict between the [payday lending] statute and the [State Banking Department’s] regulation.” This will give the Banking Department the tools necessary to ensure payday lenders adhere to the law. Without any doubt, this is a major step in the right direction.
Shay M. Farley, legal director at Alabama Appleseed, spent a great deal of time gathering documents and meeting with the State’s lawyers preparing to testify as the Department’s expert witness. Now, the group’s attention can turn to the enactment of meaningful legislative reforms. It’s high time that all consumer advocacy groups take a stand against loan scams. The legislature must end triple-digit interest rates and require lenders to examine a borrower’s ability to repay before knowingly saddling them with insurmountable debt.
If you live in Alabama, and agree with the need to better regulate these predatory lenders, let Gov. Bentley and your legislators know how you feel. Judge Hobbs is to be commended for rendering the badly needed order that will help protect persons doing business with the payday lenders.
Source: The Montgomery Advertiser
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