SENATE DELAYS VOTE ON PAYDAY LOAN BILL
MONTGOMERY, Ala. (AP) – The Alabama Senate has delayed a vote on a Colorado-style payday loan reform that would give people at least six months to pay back the loan instead of just a few weeks.
Senators on Thursday postponed a vote after the bill hit opposition on the Senate floor.
Republican Sen. Arthur Orr, the bill’s sponsor, said borrowers currently face oppressive fees as they roll over they are unable to repay within a few weeks. The bill would also allow installment payments.
Colorado lawmakers implemented similar legislation in 2010. A study by the Pew Charitable Trusts found that the number of payday stores in Colorado shrunk by half after the change.