Troy, Ala., City Councilman Charlie Dunn is holding out hope for a plan that would limit the number of payday lenders locally. At a city council work session in March, he sought a moratorium to prohibit new payday businesses from opening within city limits. The Troy City Council decided to table Dunn's moratorium and revisit it after seeing the results of Alabama House Bill 145.
HB 145 passed the House 93 to 1 on March 13, but the Senate adjourned the bill indefinitely. The measure stipulates creation of a statewide database to prevent people from taking out more than one loan at a time. It also makes it illegal for payday loan companies to knowingly loan money to anyone with an outstanding deferred loan of more than $500. The bill prevents more than one rollover of payday loans and requires lenders to provide customers with a detailed explanation of fees and due dates in plain language. Businesses would not be allowed to “engage in unfair or deceptive acts, practices, or advertising in the conduct of the licensed business” and cannot ask for security for the transaction or require a guaranty from another person.
With the state proposal currently on the back burner, Dunn plans to again approach Mayor Jason Reeves about his own moratorium.