Payday Loan and Cash Advances in Alaska
About the payday loan and cash advance industry in Alaska
Each state and territory in the United States is governed by various types of payday loan laws. Lenders who issue payday loans in Alaska and cash advances in Alaska must adhere to certain guidelines in order to stay in business. If you are short on cash and need some money to cover your bills until your next paycheck, you may have considered applying for an Alaska cash advance or Alaska payday loan. While these types of arrangements can be convenient, they do come at a price.
Many lenders who issue Alaska payday loans charge very high origination fees and interest rates that are much higher than those you would incur from a cash advance on a credit card or if you took out a personal loan. Reviewing the terms and conditions of your payday loan agreement and understanding exactly how much you will be paying in interest charges can help you make an informed decision when taking out a loan or applying for cash advances in Alaska.
Laws Governing Alaska Payday Loans
Laws regulating payday loans and cash advance vary slightly from state to state. Alaska payday loans are subject to the following rules and limitations:
- The maximum loan amount cannot exceed $500
- The minimum loan term for payday loans in Alaska is 14 days
- The maximum finance rate and fees for Alaska payday loans is $5 + the lesser of $15 per $100, or 15% of the loan balance
- Finance charges for a 14-day $100 loan cannot exceed $20
- The APR for a 14-day $100 loan cannot exceed 520%
- Borrower has the right to rescind the cash advance or payday loan without cost before the end of the following business day
All borrowers who take out a payday loan or cash advance are permitted two renewals, and are eligible for a repayment plan if they end up defaulting on their loan.
In Alaska, the Department of Community and Economic Development has the authority to regulate payday lenders. The Department works to ensure that payday lender and third-party collectors are not participating in onerous collection practices. It has also set regulations that prohibit lenders from accepting anything other than a check as collateral.
Applying for Payday Loans in Alaska
If you decide to apply for an Alaska cash advance or Alaska payday loans, you will need to provide proof of employment and some form of identification. Lenders are not permitted to accept anything other than a check as collateral for the loan, so be prepared to bring that with you. Make sure you review the terms of the loan agreement thoroughly, and ask for the lender's license number to make sure they are a registered entity.
The Commissioner of the Department of Commerce, Community and Economic Development lists licensed payday lenders in Alaska. If you need to file a complaint about a lender issuing Alaska payday loans or have questions about the cash advance or lending process, you can contact the Alaska Division of Banking and Securities based in Juneau.
Contact information for the Alaska Division of Banking and Securities is as follows:
Alaska Division of Banking and Securities
P.O. Box 110807
Juneau, AK 99811