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My husband has (2) internet payday loans; one from VIP Loan and the other from Fast e-Funds. Are both of these illegal in AL - GRAND BAY?

Thank you.


Both the payday loan companies are illegal in AL. Ask your husband to send the principal amount via money order to the payday loan company.

Sub: #1 posted on Tue, 04/16/2013 - 08:25


Actually there is a little more to it than that --

Licensing Requirements: Online lenders must be licensed in Alabama.

I doubt that either are since:

VIP is offshore - Charlestown, Nevis West Indies

Fast EFunds - can't tell from their website but pretty sure also not licensed to lend in AL.. Check below....

Alabama Payday Loan Laws: State Legal Status

Payday loan lending is considered legal in the State of Alabama. A payday loan company is guided by the payday loan lending laws applicable in Alabama.

Loan Specifications:

Maximun Amount of Loan - $500

Term of Loan - 10 to 31 days

Maximum Rate of Finance and Fees- 17.50%; 3% per month after default

Finance Charge for $100 loan for a 14 day period - $17.50

APR for $100 loan for a 14 day period - 456.25%

Debt Limits:

Maximum Number of outstanding loans permitted at a time - None (A payday loan company can lend an amount of $500 at one time)

Permissible number of Rollovers - 1 (rollover)

Cooling-off period - Next business day after repayment of two continuous loans have been done

Repayment Plan - Yes

Limits of Collection:

Collection Fees Amount - a) One NSF fee of $30; b) Court Costs; c) Upto 15% fees (face amount of the check) of a reasonable attorney

Criminal Action - Prohibited (A collection agency cannot file any criminal action against a payday loan borrower until and unless the check gets returned due to closed account)

Here is where you can check to see if they are licensed to lend in AL:

Regulator - Alabama Banking Department -

Address - P.O. Box 4600 Montgomery AL 36103

Phone - (334) 242-3452

If you find both are unlicensed to lend in AL:

Follow this link on how to deal with.. th-illegallende...

Sub: #2 posted on Tue, 04/16/2013 - 18:36

HelpinAZ HelpinAZ
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