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.
Alabama's Consumer Finance Industry--By the Numbers
The Alabama Consumer Finance Industry is big business in our State, affecting the many lives of customers and employees alike. There are over 1700 licensed consumer finance company offices in our State. These are the traditional installment loan companies. (This number does not include pawnshops, title pawn lenders, payday lenders, mortgage brokers, banks or others who may be exempt from licensing.) The 1700 licensed locations conservatively employ over 11,000 Alabamians, with a payroll projected of approximately $374 million.
In the year ending 2010 (the last year with available statistics), the Alabama Banking Department reported that the 1738 Small Loan Act and Mini-Code licensed offices had over 584,500 loans outstanding. This vast number of loans means that licensees fulfilled the financing needs for many Alabamians. As of the reporting date, the total outstanding balance on these loans was $8.257 billion. These licensees had combined assets of some $5.961 billion.
The finance industry is growing in our State to continue to meet the growing demand of Alabamians for the efficient delivery of consumer credit at a fair price. Consumer credit is the fuel that drives the economy. We are proud of the role that we are playing in making credit available to so many worthy people in Alabama.
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.
The Alabama Lenders Association is composed of large companies and small mom & pops. Each lender is entitled to one vote per Alabama office; but we limit the influence of any one company by limiting the number of votes that any one association member can exercise to three. Our Board of Directors is composed of 20 members, and our nominating committee works diligently to ensure that both Small Loan Act lenders and Mini-Code lenders are well represented. As a result of this structure, the Association will never be dominated by any one company, and will always focus on the needs of the finance industry in Alabama.
are composed of 99 member companies today, representing 339 lending offices
throughout Alabama. Our 21 Associate Members help keep us strong and
viable with their innovative products and services. (Please see our list
of Associate Members and links to their websites on the Members tab.) We
are so proud of our relationship with these Associate Members, and we could not
do our job without their support.
Association meets several times each year. Our premier meetings include
our annual Legislative Reception in late winter or early spring of each year in
Montgomery, coinciding with the start of each Alabama Legislative session; a
fall Committee Day focusing on the business of the association and an industry
update; and, our Annual Convention, in June of each summer giving us time
together to discuss business and
legal developments, map out strategy for the year, and spend quality time socializing and golfing in a beautiful venue. In 2012, our Annual Convention was held at the Hilton Sandestin Beach Golf Resort and Spa in Destin, Florida. We also go to resort venues such as The Grove Park Inn Resort & Spa in Asheville, NC., and to gambling venues such as the Beau Rivage in Biloxi, Mississippi.
Please get in touch with the Alabama Lenders Association at the Contact Us tab with any questions that you may have about our Association, our state laws and regulations, or questions about the consumer finance industry in Alabama. We will be pleased to talk to you and share information with you about these topics. We are proud of our industry and our state, and we are very proud of the contributions that we have made and continue to make to consumer financial services in Alabama.