Governor Bentley Signs Executive Order Creating Alabama Consumer Protection Task Force

By: Daniel Sparkman, Digital Media Coordinator

MONTGOMERY (Governor’s Office) – Governor Robert Bentley on Tuesday signed Executive Order 21 creating the Alabama Consumer Protection Task Force. The Task Force will work to identify areas of Alabama’s consumer credit laws that could be improved to better protect citizens from predatory lending practices.

“One of the largest problems affecting Alabamians who are in need of emergency funding is the predatory lending practices of some payday or title pawn lenders out there,” Governor Bentley said. “I am creating this task force so that we can put a stop to the practices and better protect Alabama consumers.”

Every year in Alabama about 2.5 million loans are taken out by more than 200,000 people. Those loans account for nearly $800 million in revenue for the payday loan industry.

“This is a great day for the Bureau of Loans and the State Department of Banking,” said John Harrison, Superintendent of Alabama State Banking Department. “But more importantly, this is a great day for the ability of consumers in Alabama to access available credit.”

The Alabama Consumer Protection Task Force will report its findings and recommendations to the Governor by January 30, 2017. Those recommendations may take the form of regulatory or statutory changes.

The Task Force will be comprised of 33 experts appointed by various stakeholder organizations including the Office of the Governor, Alabama Legislature, Alabama Law Institute, Attorney General’s Office, Alabama Bar Association, Alabama State Baking Department, Alabama Department of Insurance, State of Alabama Credit Union Administration, Alabama Appleseed, Arise Citizen Policy Project, Southern Poverty Law Center, AARP, Alabama Pawnbrokers Association, Community Financial Services Association, Mortgage Bankers Association of Alabama, Alabama Mortgage Professionals Association, Alabama Lenders Association, Alabama Consumer Finance Association, American Financial Services Association, Alabama Bankers Association, Alabama Credit Union Association, and Alabama Securities Commission.

A copy of the signed Executive Order is available here.

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