Who must be licensed under the Deferred Presentment Services Act?
Lenders that hold personal checks until the borrowers next payday, also known as payday lenders, must obtain a Deferred Presentment Services license for each location in Alabama. Banks, savings & loans, and thrift institutions are exempt from the Act. The maximum fee for payday loans in Alabama is 17.50% of cash advanced. The maximum loan amount is $500 and the term must be a minimum of 10 days to a maximum of 31 days. Alabamas Deferred Presentment Services Act is codified at Alabama Code 5-18A-1 et seq., a copy of which is available on our website.
