Alabama Senate Oks Bill to Cap Payday Lending Interest Rates

U.S. News 

With payday loans, borrowers pay a flat fee of up to $17.50 per $100 to borrow money for a period of 10 to 14 days. Critics argue that the loans can become a predatory lending trap when people borrow more money when they can't pay off the first loan. Industry backers say lenders provide a service to cash-strapped people who have few alternatives.