(MONTGOMERY, Alabama) – There has been news that the Alabama Department of Banking is preparing a database of all the borrowers of loan. This database will keep the record of the loan amount along with the personal details of the person having the loan. This will help the department to prevent the person from having loan if he has the $500 or above loan amount pending. Although they claim that it is for the benefit of all, but still there are so many things to worry about as this is not applicable on other domains like banks, online payday loans etc. and it seems to be targeting only short term loans like Title Loans, Payday Loans, Cash Advance, Check Cashing, Installment Loans.
Payday Loans community member, Andrew Campell, is trying to sue the Alabama Department of Banking for this illegal and unfavorable practice but still the herring has not been scheduled. He further points out that the Alabama department is also taxing the payday loans lender for accessing their databases. He said that it will be a setback for their business as the loan amount has been limit to $500.
Banking Superintendent John Harrison has praised it saying it a very good effort from the part of Alabama Department of Banking as there was no uniform, statewide database before. He said that it’s done for facilitating the business of payday loans, cash loans, cash advance loans etc. In this way it will make it less prone to fraud. We are imposing the $500 limit that will be in the benefit of both the lenders and borrowers. This database will be brought into action from January, 2014.