Payday Loans and Cash Advance in Birmingham, AL
Legal under the Deferred Presentment Services Act in Alabama. What a shortfall looks like on Birmingham rent and pay, the local rules, who to call for help, and how to request a cash advance online.
Birmingham's biggest employer by a wide margin is UAB, the university and its hospital system, and the medical district south of downtown pulls in everyone from surgeons to the people who run the parking decks and cafeterias. Regions Bank, Protective Life, and Alabama Power keep headquarters downtown, St. Vincent's and Brookwood Baptist add more hospital jobs, and the Amazon fulfillment center in Bessemer and the warehouses along I-20 and I-65 hire by the shift. The old steel and iron economy is mostly a museum at Sloss Furnaces now. Neighborhoods like Woodlawn, Ensley, East Lake, and West End carry the weight of that transition, and the city's median household income of $46,051 is the lowest in this group; the higher earners tend to live over the mountain in Hoover, Homewood, and Vestavia Hills. The median gross rent of $1,107 is not high by national standards, but against local pay it is a heavy share of the month. MAX buses run the main lines, and most people still need a car. Tornado season and long, humid summers both show up on Alabama Power bills. By the city council's own findings, Birmingham has more payday and title loan storefronts per resident than the rest of Jefferson County, which is why it passed a spacing rule in 2013.
What a $500 Shortfall Looks Like in Birmingham
Birmingham's median household income of $46,051 is about $3,838 a month before taxes, so a $500 shortfall is roughly 13 percent of a month's income for a median household, the largest share among these twelve cities. Against the median gross rent of $1,107 it is about 45 percent of one month's rent. Alabama allows a payday lender to charge $17.50 per $100 on that $500, which adds $87.50 to a gap that already eats an eighth of the month.
Alabama Rules That Apply in Birmingham
| Rule | AL |
|---|---|
| Maximum amount | $500 total outstanding with all deferred presentment providers combined, verified through the statewide database (Ala. Code 5-18A; Banking Department notice) |
| Maximum fee per $100 | $17.50 per $100 advanced, or 17.5% of the cash advanced (Ala. Code 5-18A-12) |
| Maximum term | 31 days (Ala. Code 5-18A-12) |
| Rollovers | One renewal allowed if the lender offers it, with a new fee; after that the lender may extend repayment into four equal monthly installments at no extra cost |
| $300 for 14 days | $52.50 fee, 456% APR |
The full law, the regulator's phone number and the statute citations are on the Alabama cash advance page.
Local Ordinance in Birmingham
Birmingham regulates where payday (deferred presentment) and title loan stores can open, not what they charge. Section 21 of Article VI in the city's zoning ordinance, adopted as Ordinance 13-178 on December 26, 2013, bars any new payday or title loan business from opening within 2,000 linear feet of another such business, measured in a straight line between the closest points of the two properties. Stores already within 2,000 feet of each other on that date were grandfathered as legal nonconforming uses. The council's stated reasons were the number of these stores per resident compared with the rest of Jefferson County, traffic, and the effect on nearby property values. Earlier in 2013, Ordinance 13-71 added the use to the permitted lists for the B-1, B-2, and B-3 business districts. Fees, loan size, and term are still set by the Alabama Deferred Presentment Services Act.
Free Help in Birmingham Before You Borrow
- United Way of Central Alabama 2-1-1: Referral line for rent, utility, food and shelter help across the Birmingham area, run by United Way of Central Alabama. Call 211 or visit uwca.org/211.
- Community Action Agency of Northeast Alabama: Administers LIHEAP energy assistance for Jefferson County, with a Birmingham office at 900 38th Street North; ADECA lists its LIHEAP call center at 1-855-287-1730. Call 205-502-2108 or visit caaneal.org.
- Alabama State Banking Department: Licenses payday (deferred presentment) and title lenders, runs the statewide loan database and takes complaints; toll-free 1-866-465-2279. Call 334-242-3452 or visit banking.alabama.gov.
- ADECA Energy Division (Alabama LIHEAP): State office for the Low Income Home Energy Assistance Program; its page lists the local agency and call center for every county. Call 1-800-392-8098 or visit adeca.alabama.gov/community-services/liheap.
Frequently Asked Questions
How much can a payday loan cost in Birmingham?
Alabama caps a deferred presentment loan at $500 for 10 to 31 days, with a fee of up to $17.50 per $100 borrowed, so the most a lender can charge on a $500 loan is $87.50. On a two-week term that fee works out to an APR above 450 percent. The lender must hold a license from the Alabama State Banking Department and must show the fee and APR in the written agreement before you sign.
Can I have more than one payday loan at a time in Alabama?
No. Alabama runs a statewide database that every licensed lender must check before making a loan, and it blocks a second loan while one is open or the combined amount would pass $500. If you cannot repay on the due date, state law lets you ask for an extended payment plan at no extra fee, which is enforced through the same database. Any Birmingham lender that skips the database check is operating outside the law.
Does Birmingham's ordinance limit what I pay?
No. The city's 2013 zoning rule only keeps new payday and title loan stores at least 2,000 feet from an existing one, and stores that were already closer were grandfathered in. Fees, the $500 cap and the 10 to 31 day term all come from the Alabama Deferred Presentment Services Act and are the same in Birmingham as in Hoover or Bessemer. Complaints about a lender go to the State Banking Department, not to city hall.
Where can I get help with an Alabama Power bill in Birmingham?
The Community Action Agency of Northeast Alabama administers LIHEAP for Jefferson County and has a Birmingham office at 900 38th Street North; call 205-502-2108 or the LIHEAP call center at 1-855-287-1730 for an appointment. United Way's 2-1-1 line lists other utility funds in the metro, and Alabama Power will set up a payment arrangement if you call before the due date. Ask about those before taking a loan for a bill.
