The meeting was called by City Councilwoman Kim Rafferty, who hopes to lay the foundation for a clearinghouse of available institutions willing to provide services to those now turning to high-interest and high-fee payday lending and check cashing businesses.
The 10 a.m. meeting to form "Bank on Birmingham" comes two months after the city imposed a six-month moratorium on new licenses for such businesses.
"We can't get rid of the payday loans, but we can give people alternative choices and education so there is no need for payday lenders in the city of Birmingham anymore," Rafferty said. "We can't tell people how to spend their money, but we can give them better opportunities. This is a consortium of banking institutions that produce a product that meets the local need."
Birmingham's project is modeled after initiatives including San Francisco's Bank On program that includes financial education and counseling, low-cost checking and savings accounts, electronic pay solutions and alternative small payday loan programs.
Residents in that city have opened tens of thousands of checking accounts through the program since it began in 2006. It has been cited as a national model.
Nashville this week became the latest city to adopt the concept with the creation of "Bank On Music City."
Birmingham's conversation about residents with poor credit and few options was piqued in December when the City Council passed the moratorium.
Since then, the federal Consumer Financial Protection Bureau held its first field hearing on payday lending to a standing-room-only audience in Birmingham.
The city's temporary halt on new approvals for the businesses was proposed by Councilwoman Lashunda Scales. Scales, who was not involved in Rafferty's initiative, said she would continue her efforts to combat the proliferation of payday lending businesses.
"I applaud Councilor Rafferty's efforts; however, as a committee we will remain focused on the charge at hand, which is to minimize payday lending institutions within the corporate limits of the city of Birmingham," Scales said. "In weeks to come, as chair of the economic development committee, I am going to have several town hall meetings regarding the facts of payday lending institutions and the disastrous effects it has on the inner city.
High rates are meant to cover the shop's losses on unpaid loans. And fees run $15 to $20 per $100 loaned. But the problem for consumers tends not to arise from a single loan. It's multiple loans. Payday customers often fail to repay the loan on time.

"We can't get rid of the payday loans, but we can give people alternative choices and education so there is no need for payday lenders in the city of Birmingham anymore," Rafferty said. "We can't tell people how to spend their money, but we can give
Payday loans are made in amounts of up to $500 for periods of 14 to 31 days. They typically carry fees of about $20 per $100 borrowed, payable every 14 days. Missouri law allows fees of up to $75 per $100 on a single loan, including renewals.

And the fast, easy credit that payday lenders offer is a tempting source of cash when you're in a financial jam. But industry critics say that's a debt trap. Interest rates and fees on payday loans, averaging 390 percent, are so onerous that some

In Alabama, there are four times as many store-front payday businesses than there are McDonalds. The new head of the controversial Consumer Financial Protection Bureau is taking on a multi-billion dollar industry. As one of his first acts,
Just as there are two types of website (direct response website and traditional websites), there are two types of website marketing: direct marketing and indirect marketing.
A more effective option is to post your link on various forums, blogs, on sites. At worst, people will start actively disparaging you, your business, and your product on other forums–giving you a bad name before people even see your link.
o Don’t post your links in places unrelated to your product.
o Don’t interrupt forum conversations in progress in order to promote your product.
o Be careful when promoting your product in forums that you don’t regularly visit. All the payday loans are consolidated into one simple and easy loan payment. The multi payment payday loans direct lender would normally charge you a small sum of money for the service.
To summarize, simply apply for an online loan through multi payment payday loans direct lender if you are facing a financial problems with paying up for many payday related loans.