Alaska Payday Loans

Alaska Stat. §§ 06.50.010 et seq.
Status: Legal

Payday Loan Lending Laws in Alaska

Alaska payday loan laws allow a borrower to request up to $500 for the loan amount. The laws do not state the repayment time period, although the minimum amount of time stands at 14 days. The maximum APR in Alaska currently runs at 520% for every $100 of a loan issued for a 14-day period. Finance charges must not exceed $20 in any case for every $100 of loan issued for a 14-day period. It should be noted here the terms "charges," "rates," and "fees" do not refer to the same thing. A potential borrower should understand the meaning of these terms as they pertain to the repayment contract offered by the lenders. Lenders can also charge a $30 nonsufficient fund fee for bounced repayment checks.

Alaska has two defining features with regard to its payday loans, the first one being the lack of specifications as to how many individual short term loans a potential borrower can have out at one time. This feature, while not unique to Alaska, represents the largest advantage and disadvantage of using payday loans. As an advantage, the ability to take out multiple loans can allow a responsible borrower to handle multiple financial emergencies at a single time. As a disadvantage, the more loans a borrower has out can lead to potential financial stress and danger. The most important thing to remember about cash advance loans is that they operate like any other monetary loan in that a borrower has to eventually pay them back. Therefore, a borrower who uses payday loans irresponsibly can quickly find themselves stuck in a debt cycle wherein they are forced to take out further loans to pay back the older loans.

The second unique feature of Alaska payday loans is the use of rollovers. If a borrower becomes delinquent in their attempts to pay back the loan, they have the option of rolling over the balance for two consecutive months if the borrower fails to make the repayment. Doing so makes the borrower liable for interest due to the extended period of time at the same rate agreed in the loan contract.

Alaska payday loan laws prohibit lenders from filing criminal lawsuits against those borrowers who are unable to make the repayment. This means a lender cannot threaten a delinquent borrower with jail time to get the money paid back sooner. The lender does, however, have the option to sue a borrower and seek a judgment that would require the borrower to pay the loan back on a set schedule.

Lending Rules*

Lenders in the state of Alaska are legally required to comply by the following limitations according to Alaska Stat. §§ 06.50.010 et seq.:

Maximum Loan Amount:
$500
Minimum Length of Loan:
14 days
Maximum Finance Rate & Fees:
$5 + the lesser of $15 per $100 or 15%
Finance Charge for 14-day $100 Loan:
$20
APR for 14-day $100 Loan:
520%
Max # Outstanding Loans at One Time:
Not Specified
Rollovers Permitted:
Two (renewals)
Repayment Plan:
Yes
Collection Fees:
$30 NSF fee; Court costs of up to $700 over the amount of the payment (if disclosed in loan agreement)
Criminal Action:
Prohibited (Unless check returned due to closed account)
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/9.

Regulatory Information

If you have a complaint against a Alaska Cash Advance location you can contact your state regulator below:

Regulator:
Alaska Division of Banking and Securities
Address:
P.O. Box 110807 Juneau AK 99811
Phone:
(888) 925-2521
Fax:
(907) 465-2549
Website:


Alaska Lenders

Below you can find Alaska payday loan lenders in the following cities:

Alaska Statistics**

The following information is key demographic data for the state of Alaska from the Census bureau.

Total Population:
741,894
Median Household Income:
$72,515
Poverty Rate:
10.3%
Median Gross Rent:
$1,146
High School Graduate or Higher:
92.1%
Bachelor's Degree or Higher:
28.0%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

It is in the potential borrower's best interest to understand all the terms and conditions on the loan according to the regulations. Payday loans are, by design, supposed to be short term loans to meet the borrower's financial obligations until the next paycheck. To avoid high interest payments, paying off the loan in full within the set time frame is highly recommended.

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