1 Chris Izor, VIEWPOINTS: Alabama leads nation in car-title loan outlets (Sept. 23, 2012), http://blog.al.com/birmingham-news-commentary/2012/09/viewpoints_alabama....

2 Leslie Parrish and Uriah King, Center for Responsible Lending, Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume, p. 11-12 (July 9, 2009), www.responsiblelending.org/payday-lending/research-analysis/phantom-dema....

3 Uriah King and Leslie Parrish, Center for Responsible Lending, Payday Loans, Inc.: Short on Credit, Long on Debt, p. 5 (March 31, 2011), www.responsiblelending.org/payday-lending/research-analysis/payday-loan-... (finding that borrowers in Oklahoma are indebted for an average of 212 days in their first year of payday loan use); Pew Charitable Trusts, Payday Lending in America: Who Borrows, Where They Borrow, and Why, p. 4 (July 2012), www.pewstates.org/uploadedFiles/PCS_Assets/2012/Pew_Payday_Lending_Repor... (using industry data to determine that the average borrower is indebted for five months per year).

4 Leslie Parrish and Uriah King, Center for Responsible Lending, Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume, p. 11-12 (July 9, 2009), www.responsiblelending.org/payday-lending/research-analysis/phantom-dema....

5 Uriah King and Leslie Parrish, Center for Responsible Lending, Payday Loans, Inc.: Short on Credit, Long on Debt, p. 5 (March 31, 2011), www.responsiblelending.org/payday-lending/research-analysis/payday-loan-... Pew Charitable Trusts, Payday Lending in America: Who Borrows, Where They Borrow, and Why, p. 4 (July 2012), www.pewstates.org/uploadedFiles/PCS_Assets/2012/Pew_Payday_Lending_Repor....

6 For example, the charge-off rate for payday lenders in Virginia in 2008, when lenders faced minimal restrictions and were allowed to charge $15 for each $100, or about 391% APR, was about 3.2%. Bureau of Financial Institutions, State Corporation Commission, Commonwealth of Virginia, The 2008 Annual Report of the Bureau of Financial Institutions: Payday Lender Licensees Check Cashers, p. 7, www.scc.virginia.gov/bfi/annual/ar04-08.pdf (lenders extended $1,327,345,367 in payday loans and charged-off only $42,482,127 as uncollectible). This is well below the average charge-off rate of 5.5% reported by banks in the same year. Board of Governors of the Federal Reserve System, Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks, www.federalreserve.gov/releases/chargeoff/chgallsa.htm. While this charge-off rate for payday loans does not represent the number of borrowers who eventually default (given that rollovers are counted as repayment of the debt and the extension of a new loan, and not as a “default”), it does show that lenders obtain interest payments from the vast majority of loans they extend. Similarly, every borrower with whom we spoke represented that they had paid at least the principal value of the loan back in interest before defaulting, and most had paid many times the original principal amount.

7 Leslie Parrish and Uriah King, Center for Responsible Lending, Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume, p. 11-12 (July 9, 2009), www.responsiblelending.org/payday-lending/research-analysis/phantom-dema....

8 Pew Charitable Trusts, Payday Lending in America: Who Borrows, Where They Borrow, and Why, p.13-14 (July 2012).

9 Community Financial Services Association of America, CFSA Member Best Practices, http://cfsaa.com/cfsa-member-best-practices.aspx; Community Financial Services Association of America, What Is an Extended Repayment Plan?, http://cfsaa.com/cfsa-member-best-practices/what-is-an-extended-payment-...

10 Ala. Code § 5-18A-12(a).

11 Ala. Code § 5-18A-13(c).

12 Ala. Code § 5-18A-12(a).

13 Ala. Code § 5-18A-2(3).

14 Ala. Code § 5-18A-12(d); Ala. Code § 8-8-15.

15 Ala. Code § 5-18A-12(b).

16 Ala. Code § 5-18A-12(b).

17 Ala. Code § 5-18A-12(b).

18 Ala. Code § 5-18A-12(c).

19 Ala. Code § 5-18A-13(a).

20 Ala. Code § 5-18A-13(o).

21 Floyd v. Title Exchange and Pawn of Anniston, 620 So.2d 576 (Ala. 1993).

22 Courts in Kentucky, West Virginia, Nevada, and Tennessee have found that because a title lender does not take possession of the vehicle, these transactions are not true pawn transactions and thus cannot be issued under pawnshop laws. See Chandler v. Kentucky Title Loan, 16 S.W.3d 312 (Ky. Ct. App. 1999); State ex rel. McGraw v. Pawn America, 518 S.E.2d 859 (W.Va. 1998); In re Schwalb, 347 B.R. 726, 752 (Bankr. D. Nev. 2006); Lynn v. Financial Solutions Corp. (In re Lynn), 173 B.R. 894 (Bankr. M.D. Tenn. 1994). The Attorney General of Colorado similarly interpreted Colorado law. See State of Colorado Department of Law Office of the Attorney General, Administrative Interpretation No. 1.202-9401 (Aug. 31, 1994).

23 Ala. Code § 5-19A-7(a).

24 Ala. Code § 5-19A-8(7).

25 Ala. Code § 5-19A-8(7).

26 Ala. Code § 5-19A-3(7).

27 Ala. Code § 5-19A-10(b).

28 Ala. Code § 5-19A-6.

29 Center for Responsible Lending, Payday Lending: How a Short-Term Loan Becomes Long-Term Debt, www.responsiblelending.org/payday-lending/ (17 states and the District of Colombia have enacted double-digit rate caps for payday lending); Center for Responsible Lending, Car Title Lending by State, www.responsiblelending.org/other-consumer-loans/car-title-loans/tools-re... (30 states and the District of Colombia have enacted double-digit rate caps or ban the practice of title lending).

30 The Military Lending Act, 10 U.S.C. § 987 (2006).

31 Federal Deposit Insurance Corporation, A Template for Success: The FDIC’s Small-Dollar Loan Pilot Program, FDIC Quarterly, Vol. 4 No. 2 (2010), www.fdic.gov/bank/analytical/quarterly/2010_vol4_2/FDIC_Quarterly_Vol4No....

32 Federal Deposit Insurance Corporation, Financial Institution Letters: Guidelines for Payday Lending (2005), http://fdic.gov/news/news/financial/2005/fil1405a.html.

33 Military Lending Act of 2007, 10 U.S.C. § 987(e)(5).

34 Pew Charitable Trusts, Payday Lending in America: Who Borrows, Where They Borrow, and Why, p.13-14 (July 2012).

35 North Carolina Department of Justice, Payday Lending on the Way out in NC (March 1, 2006), www.ncdoj.com/News-and-Alerts/News-Releases-and-Advisories/Press-Release...

36 Center for Community Capital, University of North Carolina, North Carolina Consumers after Payday Lending: Attitudes and Experiences with Credit Options (Nov. 2007).

37 Uriah King and Leslie Parrish, Center for Responsible Lending, Springing The Debt Trap: Rate Caps Are Only Proven Payday Lending Reform (Dec. 13, 2007) (taken from data provided by the North Carolina Commissioner of Banks).

38 State Employees’ Credit Union, SALARY ADVANCE LOANS, https://www.ncsecu.org/PersonalLoans/SalaryAdvance.html.

39 Kevin Lonergan et al., Before You Consider a Payday Lender, Consider This (Apr. 19, 2011), www.army.mil/article/55185/Before_You_Consider_a_Payday_Lender__Consider...

40 See Fort Bragg Federal Credit Union, Other Loans: Asset Recovery Kit, www.fortbraggfcu.org/ASP/Products/product_1_6.asp; PenFed Foundation, Asset Recovery Kit, www.penfedfoundation.org/ARK; David Bauerlein, Military gets Loan aid in new program, The Florida Times-Union (January 13, 2008), http://jacksonville.com/tu-online/stories/011308/bus_235938191.shtml (describing other credit union options for members of the military, including Navy Federal Credit Union’s Signature Loans, which Navy Federal began offering in smaller amounts after the MLA was passed).

41 A Template for Success: the FDIC’s Small-Dollar Loan Pilot Program (2010).

42 Maureen West, Payday Lenders Morphing Into Auto Title Lenders, AARP Bulletin (Dec. 1, 2010), www.aarp.org/money/scams-fraud/info-12-2010/payday_lenders_morphing_into... Joe Ducey and Maria Tomasch, In Arizona, title loan fast money can mean very high interest rates, ABC15 (July 21, 2011), www.abc15.com/dpp/news/local_news/investigations/in-arizona,-fast-money-....

43 Bureau of Financial Institutions, State Corporation Commission, Commonwealth of Virginia, The 2011 Annual Report of the Bureau of Financial Institutions: Payday Lender Licensees, Check Cashers, Motor Vehicle Title Lender Licensees, p. 84, www.scc.virginia.gov/bfi/annual/ar04-11.pdf.