According to a recent study done by Auburn University as reported by AL.com, Alabama ranks in the top five states in the country to have the most payday lenders per capita. The only states with more payday loan lenders than Alabama are Mississippi, Louisiana, South Carolina and Oklahoma.
One point that was raised as part of the study was speculation that these businesses prey on low income areas and areas where there is a large African-American population. One professor who co-authored the study believes this may suggest that payday lenders are seeking out a certain type of customer. The same professor went on to note that the Auburn study found that payday lenders tend to set up businesses in areas with a high percentage of African-American population and that the southeast generally has a higher population of African-Americans.
AL.com further reports that some cities in Alabama are now beginning to regulate these payday lenders by placing moratoriums that stop them from opening new businesses and changing zoning ordinances. The State of Georgia has now outlawed payday lending along with twelve other states.
If you have taken out one or more payday loans, you may be feeling like you are on a treadmill. You keep paying and paying but never seem to be able to pay enough to get out of the debt. Our firm has options that can help you get off this treadmill. Please call our office nearest you and schedule a free consultation with one of our attorneys to discuss you financial situation and how we can help.