Opening a car title loan business in Alabama is easy, and can be very profitable. Alabama has specific licensing, regulatory and compliance statutes in place. You can access all the Alabama car title loan, pawn, small-dollar loan and payday loan license applications here: Alabama Department of Financial Institutions.
FAQ’s [Alabama Frequently Asked Questions] for entrepreneurs interested in launching or buying a small-dollar loan company are available there as well. Regarding payday loans in Alabama, there is a statewide database.
Frequently Asked Questions: Statewide Database for Deferred Presentment Providers Updated February 15, 2019
Frequently Asked Questions: Statewide Database for Deferred Presentment Providers Updated February 15, 2019
If you have invested in our “bible:” How to Loan Money to the Masses Profitably, you know that we advise readers of our course to study our Course carefully and then actually get a loan yourself.
Here’s some interesting commentary from JD Supra regarding maintaining secured creditor rights in regards to Alabama car title loans & pawn.
Secured creditors must be ever mindful of their rights in consumer bankruptcy cases. Details that might seem technical or insignificant can mean the difference between a creditor’s obligation being secured and being unsecured, having a claim denied or having collateral released from the bankruptcy estate into the hands of the creditor, allowing the creditor to mitigate its financial loss.
In a recent case from the U.S. Bankruptcy Court for the Middle District of Alabama, a secured creditor was able to protect its interest in collateral in two bankruptcy cases where its title pawn transaction customers failed to redeem their pledged vehicles during the required time period. As a result, the secured creditor was able to obtain relief from the automatic stay and exercise rights against the collateral, resulting in a better financial result for the creditor.
As always, the technical details were important to the end result for the creditor. Donna Thompson and Kisha Daniel entered into title pawn transactions and several renewals with TitleMax of Alabama, Inc. Each customer provided TitleMax with the certificate of title to her vehicle, and those certificates of title identified TitleMax as the first and only lienholder.
Each customer then filed for protection under Chapter 13 of the U.S. Bankruptcy Code and declared her intention to repay TitleMax through her Chapter 13 plan. TitleMax objected to confirmation of both Chapter 13 plans and asked the court to grant it relief from the automatic stay with respect to both debtors’ vehicles, claiming that the vehicles were not the property of the debtors’ bankruptcy estates and were not subject to the automatic stay. TitleMax argued that the debtors failed to redeem their vehicles within the time period allowed under Alabama law and the Bankruptcy Code and that the court should grant TitleMax relief from the automatic stay with respect to both vehicles.
The debtors argued, among other things, that their transactions… the Pawnshop Act… Read more below,