Some states across the United States have laws regarding Internet payday loans, and the state of Arkansas is one of them as they have specific laws covering all types of online loans that are not banks but just clearinghouses acting as collection agency for payday loan applicants. The applications then sold to financial lending institutions or banks. The Arkansas payday loan created to protect borrowers and lenders.
Loan Terms for Arkansas Internet Loans
The state of Arkansas, limit the Internet payday loan to $400, which means borrowers can only get maximum $400 payable in 6 days or within 31 days. By the way, payday loans has the higher interest rate, but in Arkansas the maximum finance fees and rates that lender can charge borrowers is 10% of the check amount plus $10 and $5 for ID card.
So, for example you secure a $100 payday loan payable for 14 days the finance charges is $22.22. This actually translates to an APR or Annual Percentage Rate of almost 580% for a $100 14 day loan.
The Collection Limits For Internet Payday Loans
The payday loan obtained online is limited one loan per lender or location and cannot be consolidated or renewed for any reason whatsoever. The collection fees for default borrowers are for insufficient funds fees, court costs and attorney’s fees alone. Arkansas does not allow filling of criminal action, unless of course, the check where the loan written returned due to stop payment or close account, as that is already an attempt to defraud payday lenders.
The Arkansas state also created a regulating body to ensure that consumers protected from harassment coming from payday lenders. So, when you need help or have complaint below is agency in charge:
Arkansas State Board of Collection Agencies
Division of Check Cashing Companies
523 Louisiana Street, Suite 460
Little Rock, AR 72201