New bill would protect Alabama borrowers
The Alabama Legislature is considering two harmful bills that would raise interest rates for small loans and hurt borrowers.
Bills introduced in the House and Senate (HB 314 by Rep. Ken Johnson and SB 249 by Sen. Gerald Dial) run counter to efforts to protect borrowers from high interest rates.
If successful, these sponsors will raise rates, increase loan amounts, and continue non-refundable fees even if the borrower pays a loan off early.
These bills would:
Increase the cost of certain small loans up to 174%Create a special interest carve-out at the expense of borrowers
HB 314 will be voted on in the Financial Services Committee Wednesday, March 8, at 9 a.m. Members of the House Financial Services should be made aware about these points before voting for HB 314.
SB 249 is before the Senate Banking and Insurance Committee March 8. A public hearing has been called.
If you live in the district of the following Birmingham-area representatives, please ask your representatives to VOTE NO on these bills!
Member of the House Financial Services Committee
Message: Vote NO on HB 314
Chair of the Senate Banking and Insurance Committee
Message: Vote NO on SB 249
Not sure? Click here to find your representative.
Legislative support is indefensible because the public wants reform not big rate increasesThe public will not condone these bills when they learn they increase the cost of loans by as much as 174%.
These bills punish the average working Alabamian by forcing higher rates under the Small Loan Act.They should vote “no” on HB314 and SB249 because it will be a hot-button issue in the 2018 elections.This is not about a “free market” but a “market free” for greedy lenders to charge immoral and usurious rates to vulnerable borrowersThis is another special interest carve out just like the ones the payday and title loan lenders have
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