Profile: Alabama Lenders Association

Welcome to the Alabama Lenders Association homepage.  We are Alabama’s oldest and most respected trade association devoted to the consumer finance industry in the State of Alabama.  Since 1960, our members have promoted the interests of finance companies of all shapes and sizes.  We formed ourselves at the same time as the Alabama Legislature enacted the Alabama Small Loan Act, seeing the need for collective action to protect the interest of lenders.  Our input into that 1959 law helped preserve profitable and fair small loan lending in our state. 

        We were well established by the time the Legislature was considering the Alabama Consumer Credit Act (the “Mini Code”) in 1971, and as a result, we were able to significantly influence that law -- which is the backbone for finance company lending of $1000 and up in Alabama today.  Our early interest in the legislative process taught us the value of collective action by a strong and united trade association.  That early lesson is something we carry forward to this day.

        The Alabama Lenders Association has been directly involved in some of the most innovative changes to the Alabama lending laws, including appropriate increases in lending limits, and increases in rates, fees and charges.  In increasing the lending limits, we have made credit available to more deserving Alabamians; and, by increasing late charges, we have properly put the increasing costs of collection on those who deserve to bear the costs. 

        Today, we work with our State regulators and legislators to help craft and enforce consumer credit laws that are fair to both consumers and industry.  By coming up with creative products such as the Interest Surcharge under the Interest & Usury Chapter of the Alabama Code,  the Account Maintenance Fee under the Mini-Code and the Alternative Rate structure available under the Alabama Small Loan Act, we have positioned the traditional consumer finance industry to be a strong competitor in today’s marketplace. (Please review the list of the various laws and regulations that we have been involved with since 1996 under the Law & Regulations tab.)

        We have also been instrumental in helping to facilitate changes in the Alabama Banking Department regulations, the  Alabama Department of Insurance credit insurance regulations and the favorable way that our state courts now view arbitration.  These and other initiatives would not have happened but for the united efforts of the members of the Alabama Lenders Association.