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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 111484
Experience:  Attorney At Law handling education matters.
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How can I stop the interest on a payday loan and make sure

Customer Question

How can I stop the interest on a payday loan and make sure my payments get applied to the balance. The balance keeps rising because none of my payments are being applied.
Submitted: 9 months ago.
Category: Bankruptcy Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Alabama has a payday lender law, which is not very strong. See: Ala. Code §§ 5-18A-1 et seq. Under the AL law, the maximum rate is 17.50%; 3%/month after default. If they are charging you more interest than allowed by state law, such that you cannot ever pay the balance, then you need to file a complaint at:
Alabama Banking Department
Address: P.O. Box 4600 Montgomery AL 36103
Phone:(###) ###-####
Fax:(###) ###-####
If the ABD cannot resolve your matter then I am afraid that you would have to file sue the company for predatory lending if your loan is not in compliance with the AL code.

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