Yesterday, Gov. Robert Bentley established a predatory lending prevention task force consisting of a minimum of 33 members. The Executive Order creating the Alabama Consumer Protection Task Force states that the Alabama Credit Union Association will have one appointment, the Alabama Credit Union Administration will have two appointments, and the legislature will tap appointees, as well.
The need for reform of the payday and title lending industry has been an issue that LSCU has brought to the attention of the administration and legislature over the past year. The establishment of this task force is a positive step toward meaningful change in a business that many feel is predatory by nature.
The formation of the task force comes after the Consumer Financial Protection Bureau proposed regulations requiring that lenders prove borrowers are capable of repaying loans and more. The state also launched a database in August 2015 to improve enforcement of a law prohibiting borrowers from taking out more than $500 in short-term loans at once.
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