Our typical customer has a job with steady income and a bank account. The average customer has income between $25,000 and $50,000, is married with children and under 45 years of age. Ninety-four (94%) percent of our customers have high school diplomas and over 50% have had some college education.

In Alabama, deferred presentment services transactions compare favorably with some alternative methods of securing available cash, primarily because of their ease and convenience. Deferred presentment transaction fees are in line with related financial services. For example, in Alabama, consumers are often charged $30 for a bad check by a merchant and another return fee by their own bank. Credit card late charges can be as much as $27.00 for a matter of a few days late. Utility bills can include late charges plus disconnection and reconnection fees. Thus, the alternative of using a Payday Loan to avoid such fees is a very real advantage.

Surveys show that 92% of Payday Loan customers find Payday Loans to be useful; 75% are satisfied with their most recent transaction; and, there is a very low complaint level.

PAYDAY LOANS IN ALABAMA:

In Alabama our law provides strong consumer protections. Payday Loans are limited in the aggregate to $500 at any one time to any one customer; there is a 10 day minimum repayment period; interest rate is limited to 17.5%; transactions are limited to a single rollover; and, if unable to pay, a customer may be afforded a repayment in four installment option. Our members are licensed by the Alabama Department of Banking. That Department audits and examines each licensee, requires appropriate signage within the licensed location, and generally assures compliance with Alabama law.

ALABAMA’S TRADE ASSOCIATION:

Our membership is comprised of over 50 separate companies representing over 500 licensed locations in the State of Alabama. Our members include some of the nation’s largest deferred presentment providers, regional companies, local companies with a few offices, and “mom and pop” companies with a single licensed location. We have a very diversified membership base. What we have in common in addition to our business, is that our membership understands the importance of joining together in a trade association to promote common interests and to provide educational opportunities. Our trade association allows us to speak with a unified voice to vendors, legislators, regulators, consumer advocates, the press and other constituencies.

If you are not a member, we encourage you to join. Membership fees are very reasonable, starting at $100 per office for up to 5 offices, $1000 for 6-10 offices, $2000 for 11-20 offices, and so forth. Dues are capped at $5000. Voting rights are commensurate with the size of the member, with those paying more dues having more votes, but still affording excellent representation to smaller, local companies.

Joining is easy. Just fill out a membership application and follow the instructions on the form. The application, our contact information and much more is available on this website. We look forward to seeing you at all MFSA meetings and working with you for the common good of the Deferred Presentment Industry in Alabama.