Alabama House panel OKs bill regulating title loans

Alabama House panel OKs bill regulating title loans

March 13th, 2013 by Associated Press in Local - Breaking News

MONTGOMERY, Ala. - An Alabama House Committee has approved a bill that would regulate the issuing of title loans, while allowing most of the title loan businesses to continue operating.

The House Financial Services Committee approved the bill known as the Alabama Title Loan Act Wednesday on a voice vote with only one vote against the proposed legislation. The bill now goes to the full House for debate.

Opponents claimed the bill does not address what they say are the exorbitant interest rates charged by the industry. Title loans are transactions where a person's vehicle is often used as collateral.

The bill's sponsor, Republican Rep. Lesley Vance of Phenix City, says the title loan industry is necessary because many people take out the loans when they're in need of financial help.