The basics to understanding title loan laws in Alabama are easier than you might think. The more you know about your Alabama title loan, the smarter and safer you make yourself as a borrower.
Every state has individual and varying laws about title loans, so even if you’re a complete aficionado on title loan laws in one state, the Alabama regulations may be slightly different. It’s important to read up on local laws so you fully understand the specifics of your Alabama title loan.
We can teach you the basic laws that you’ll need to know before committing to online title loans in Alabama.
And hey; remember that if you have any questions about your Alabama title loans or title pawning in general, you can always get in touch with us to learn more! We’ll be happy to help.
The History of Title Loans in The State of Alabama
Title loaning has been a popular source of alternative lending for years, and it’s on the rise in Alabama in particular. In 1993, the state Supreme Court of Alabama ruled that title loans be classified as a form of pawning, and their providers termed as pawnbrokers. This ruling came to be known as the Pawn Shop Act.
The courts also passed tighter legislation about the interest rates of title loans within the state, in an effort to better protect borrowers like you. Laws are continually passed to help regulated providers of title loans in Alabama; ensuring that they’re operating as legally certified pawnbrokers and lenders, which helps keeps borrowers safe from disreputable lenders, and avoid stumbling into low-quality loans.
The Pawn Shop Act also states that if the borrower fails to provide the lender payment on the loan after 30 days after signing their title loan contract, the vehicle used in the loan could become the legal property of the loan provider. The car is used as collateral in case the borrower fails to make good on their loan, but this is used as a last resort tactic and is rarely employed.
Other regulations that The Pawn Shop Act enforces in the state of Alabama are the annual licensing fees that every title loan provider must pay to the state. This helps generate revenue for the state of Alabama and is also used as a way to weed out unlicensed title loan providers throughout Alabama.
References to Use for More Information About Title Loan Laws in Alabama
To read the Alabama Pawn Shop Act and state codes regarding title loan laws, you can read the text in full by section here. If you have any legal questions regarding your title loans in Alabama, you can ask legal experts and check law forums here for free.
Avvo.com is a good resource for questions about the Alabama Pawn Shop Act and has a handy directory of local lawyers near you in Alabama. Remember, if you ever have any questions about online title loans or the Pawn Shop Act of Alabama, you can always get in touch with us at any point to learn more!
Our team of title loan specialists can teach you more about the legal ins and outs of title loaning within the state of Alabama, and about the details of the Alabama Pawn Shop Act that can help protect borrowers like you and promote higher quality title loans throughout the state.
Give us a call today to learn more, and become a better-informed borrower before you sign your loan contract for title loans or title pawning in the state of Alabama.