Alabama has a few specific laws that dictate what short-term lenders can and can’t do. Before you visit a payday loan storefront in Decatur, read up on the regulations to ensure you don’t fall victim to a scam.
Payday loans are governed by 5-18A-1 et seq. of the Alabama Statutory Citation, which covers all short-term loans in the state. These laws cover any payday loans made in person, online or over the phone — whether the lender is located in Decatur or in another city in Alabama.
You can only borrow up to $500 for a payday loan, with terms lasting anywhere from 10 to 31 days. Lenders are also limited to the amount you can be charged: Financing fees can’t be more than 17.5% of the loan amount. If you borrow a loan of $500, you’ll owe $587.50 by the end of your loan term.
If you’re unable to repay your loan, lenders are required to offer you a repayment plan with four equal monthly installments. And once you’ve repaid your loan, you can take out another provided you wait at least one business day after you’ve successfully repaid two loans.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Because you can apply online, over the phone and at a storefront, the exact steps will vary. However, the process of applying online is typically similar between lenders. To get started, follow these steps:
Compare your lender options in the table above and click Go to Site when you’re ready to apply..
Fill out the lender’s application with information about yourself, including your Social Security number, bank account details and employment status.
Submit your application and wait for an approval notification. Lenders may take multiple business days to fully process your application.
You may be required to submit proof of your employment or income to your lender during the application process. If approved, most lenders can transfer your loan funds into your account as soon as the next business day — though it may take longer depending on your bank and when you finalize your loan.
If you want to apply by phone or at a store, you can visit the lender’s website to see if they offer this type of application. Some storefront locations are listed under the map below.
Eligibility criteria:
While lenders have different requirements, you’ll generally need to meet the following criteria:
Approved Cash. 901 Wimberly Dr SW Suite A, Decatur, AL 35603
Cash Express. 1814 Beltline Rd SW, Decatur, AL 35601
Check ‘n Go. 2019 6th Ave SE STE 10, Decatur, AL 35601
Check Into Cash. Plumtree Center, 1000 Beltline Hwy, Suite N, Decatur, AL 35601
Covington Credit. 1605 Beltline Rd, Ste D-10, Decatur, AL 35601
Easy Money. 1402 Beltline Rd SW, Decatur, AL 35601
Frazier Loans. 1820 6th Ave SE Unit W, Decatur, AL 35601
Sun Loan Company. 1638 Beltline Rd SW, Decatur, AL 35601
What are my other short-term loan options in Decatur?
You aren’t limited to just payday loans when you need cash fast. Many lenders offer multiple short-term loan options, including:
Installment loans. If you’re afraid you might not be able to repay your loan within 10 to 31 days, you might want to consider an installment loan. While these come with longer terms that make repayments more convenient, it also means you’ll be paying more in interest over the life of the loan.
Title loans. Title loans are also a common way to get short-term funding in Alabama. You’ll likely be able to borrow more with lower interest rates than a payday or installment loan, but it comes with a catch: You risk losing your car if you default.
In addition to these, you may want to check out our guide to payday loan alternatives to see what other options you have in Alabama that don’t come with such a high interest rate.
Bottom line
Payday loans may be legal, but that doesn’t mean there aren’t specific regulations in place to protect borrowers. If you live in Decatur and need cash fast, be sure to look into all of Alabama’s payday loan laws to avoid falling victim to a predatory lender.
Frequently asked questions
While some legit lenders offer short-term loans without a credit check, it pays to be cautious. This can often be a sign of a payday loan scam. And most payday loans without a credit check still have some form of one, it’s just not compiled from one of the three main credit bureaus.
Lenders are allowed to charge a one-time nonsufficient funds (NSF) fee of $30. But if you default, your lender can charge you a financing rate of 3% per month until your loan is repaid, and you may be ordered to pay up to 15% of the court costs if a lender pursues charges against you.
There’s no maximum amount of loans you can have out at once, but your total amount owed can’t exceed $500. However, be careful. Borrowing multiple payday loans at once can quickly result in owing hundreds of dollars in interest and fees, which may result in default.
Contact the Alabama State Banking Department to file a complaint against a short-term loan provider.
Rhys Subitch is a personal finance editor at Bankrate and former loans editor at Finder, specializing in consumer and business lending. Rhys has nearly a decade of experience researching, editing, and writing for startups, Fortune 500 companies, universities and websites. They hold a BA in sociology and a certificate of editing from the University of Washington.
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We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
