My question involves an auto loan or repossession in the State of: Alabama,
THe company I have my title loan through charges 25% interest per month, but also charges me a daily late fee every day after the 30 days I am late to make a payment wich goes towards my principal. Does this violate The Alabama Pawnshop Act? The part that makes me ask is this i found listed in the act;
Section 5-19A-7
Pawnshop charge; amounts in excess of pawnshop charge.
Pawnshop charge; amounts in excess of pawnshop charge.
(a) A pawnbroker may contract for and receive a pawnshop charge in lieu of interest or other charges for all services, expenses, costs, and losses of every nature but not to exceed 25 percent of the principal amount, per month, advanced in the pawn transaction.
(b) Any interest, charge, or fees contracted for or received, directly or indirectly, in excess of the amount permitted under subsection (a) shall be uncollectible and the pawn transaction shall be void. The pawnshop charge allowed under subsection (a) shall be deemed earned, due, and owing as of the date of the pawn transaction and a like sum shall be deemed earned, due, and owing on the same day of the succeeding month.
(Acts 1992, No. 92-597, p. 1227, §7.)

