The Deferred Presentment Services Act
Alabama's payday lending is governed by Title 5, Chapter 18A of the state code — the Deferred Presentment Services Act — enforced by the State Banking Department's Bureau of Loans. It caps a single loan at $500 regardless of how many lenders or transactions are involved, with a maximum finance charge of 17.5% of the amount advanced — $87.50 on a $500 loan.
Loan Term and Rollover Rules
An Alabama payday loan must run between 10 and 31 days, and state law permits exactly one rollover or renewal of an existing loan — not unlimited rollovers, which is a meaningful guardrail compared to states with no rollover limit at all.
Enforcement
The Bureau of Loans enforces the Deferred Presentment Services Act and can discipline lenders that violate it, including financial penalties and license revocation — worth knowing if you ever need to file a complaint about a lender operating in the state.
| Factor | Alabama Rule |
|---|---|
| Maximum loan amount | $500 |
| Finance charge cap | 17.5% of amount advanced |
| Loan term | 10–31 days |
| Rollovers permitted | 1 |
Because Alabama permits one rollover, it's worth understanding upfront what a renewal would cost before you need to use it — that's often where total cost climbs fastest.
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