The state of Alaska allowed payday lenders to offer cash advances to U.S citizens and residents, which are repaid on the next payday. If planning to make a loan, then it is important that you know the payday loans law to ensure you are paying what is only necessary.
Payday loans also known as small dollar loans are unsecured type of loans, wherein customers can only borrow between $500 and $1000 should they qualify. The requirements to avail of the loan are quite easy, so there is no doubt that you can get instant loan fast.
Payday Loan Finance Rate in Alaska
In the state of Alaska, the law permits caps the finance rate at 15% or $15 per $100 dollar borrowed, plus a non-refundable origination fee amounting to $5, so the total finance charge would $20 for 14-day loan. The loan fee is equivalent to an APR or annual percentage rate of 520 percent.
When it comes to the term of the loan, there is no maximum length cap by the state, so loan terms depend on the payday lender. Rollovers of loans are not allowed, but when it comes to the number of loans allowed per person, there is no limit so you can take out two loans at the same time.
Collection Laws On Payday Loans
In Alaska, payday lenders can charge borrowers a one time fee of $30 for checks returned due to insufficient funds. Filling of criminal actions to customers is not allowed unless the borrower intends to defraud payday lender from the start like for example the bank account where the checks were issued were closed before it can be presented. If there is no intent to defraud lender, then a collection case against customers can be filed and wherein the court coast could run up to $700 dollars.
Payday Loan Statute In Alaska
The payday lending law is under the Alaska statute 06.50.100, so if you have complaints or questions pertaining to loans in this state you may contact the Alaska Division of Banking and Securities.Share