At a time that may feel like a bleak confluence of a public health crisis and economic uncertainty – as COVID cases and unemployment rates continue to rise – it is important to know the risks of small-dollar payday and auto-title loans.
As a leading advocacy organization for older Texans and their families, AARP Texas is actively engaged in the response to the coronavirus outbreak and is calling on state officials to take specific steps to protect the public’s health and wellbeing.
Lenders in Alabama currently offer payday loans and automobile title loans at triple-digit interest rates (up to 456 annual percentage rate), far above the 36% annual interest rate cap that Congress set for military personnel and their families. Misleading promises of a quick fix trap the most vulnerable Alabamians in financial quicksand and leave borrowers in a never-ending cycle of debt, often borrowing from other payday lenders to pay back an initial loan.
The House Commerce Committee is hearing testimony on HB562, a car title loan bill that would cap interest rates at 36%. AARP supports this bill and offers this testimony:
Search AARP States
Sign Up & Stay Connected