Alabama Rep. Patricia Todd (D-Birmingham) has two bills that would restrict short-term loans in the state, capping the rates at 36 percent and requiring the businesses to track payments. Supporters and opponents of the bills concur that it would push both industries out of Alabama. The state's payday lenders are licensed under a 2003 law known as the Deferred Presentment Services Act, which allows them to extend loans of up to $500 and charge a “maximum fee” of up to 17.5 percent per loan -- equivalent to an annual percentage rate of 456 percent. Title loans, regulated under the Alabama Pawn Shop Act, can charge up to 25 percent per month, or 300 percent per year, on property such as vehicles. Todd’s bills would limit the number of payday loans per individual to six per year and would forbid loaning to customers who owe more than $500. The legislation also would require the creation of a central database on payday loans, which businesses would use to research the loan status of potential borrowers. Title lenders would not be able to keep all the money made from the sale of a repossessed vehicle but instead would have to give the money back to the original title holder after subtracting unpaid principal and interest, late fees, and the cost of repossession.