Tuscaloosa councilors publicly support interest rate caps on pay - WBRC FOX6 News - Birmingham, AL

Tuscaloosa councilors publicly support interest rate caps on payday loan businesses

(Source: WBRC video) (Source: WBRC video)
TUSCALOOSA COUNTY, AL (WBRC) - Tuscaloosa City councilors have taken a public stand on cash advance and cash checking businesses.

On Tuesday during their weekly meeting, the council passed a resolution to support the capping the interest rates these businesses can charge.

The resolution supports legislation that caps those rates at 36 per cent.

It's supported by a local group called Tuscaloosa Citizens Against Predatory Practices that's protested in front of businesses and asked city for its support.

Cash advance businesses can provide a service by loaning money to people who have been turned away by banks. Advocates say it's a good idea but those high interest rates are on loans to people who may be in desperate circumstances and could have trouble making payments.

That could start a cycle where those people are continuously in debt.

City Councilman Kip Tyner is voting in favor of the resolution.

"It will let those types of businesses know that we mean business here in Tuscaloosa and hopefully all across the state of Alabama and it's one way I think of helping protect our most vulnerable citizens," Tyner said.

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