Alabama will soon know which area residents have loans from payday lenders. Gov. Robert Bentley has approved a statewide database of loans made by payday lenders to ensure that they comply with state law and do not allow customers to borrow more than $500 at any one time.
Supporters say the database will keep residents from incurring more debt than they can handle. Opponents counter that the database will only push more consumers to use unregulated Web-based loan businesses and force local lenders to trim payroll. The Alabama Banking Department, which issued the new regulations, will handle the database that is on track to become by early next year.