Broke

How payday lenders crush Alabama communities

A report from Alabama Appleseed and Alabama Arise

REPORT HIGHLIGHTS

Payday lenders are responsible for bringing financial hardship to hundreds of thousands of Alabamians and their families every year, swooping in to extract profits from the struggles of hard-working people. Unless the state legislature decides to act, the scourge of predatory payday loans will continue to decimate family budgets and local economies.

  • 1.7 million: Number of payday loans taken out in Alabama in 2018.

  • 33,032: Average number of payday loans taken out per week in Alabama in 2018.

  • 201,418: Number of Alabamians who borrowed money from a payday lender in 2018.

  • $101.6 million: Amount paid by Alabamians in payday loan fees in 2018. These payments did not decrease the principal amount owed.

  • 7: Average number of loans taken out by a payday borrower in Alabama in 2018.

  • 74: Percentage of Alabamians who favor a 36 percent APR rate cap and a 30 day minimum repayment schedule.