Despite being allowed to collect astronomical interest rates over a short term, but also secure their loan by automatically debiting the borrowed amount, plus interest, from the borrower's account. This often results in overdraft fees which further increase the burden on Alabama families. To make matters worse, if the vendor repossesses and sells a borrower's car, they keep any overage.    

Alabama pad-day lenders are permitted by state law to charge $17.50 for every $100 financed. That's the equivalent of 456% APR. Car title lenders aren't much better and are able to charge up to 300% APR. Title loans have the added effect of depriving our poorest families of the thing they need most to earn their way clear, transportation.