Are Payday Loans legal in Alaska?
Short-term Payday Loans are legal in the state of Alaska and are mostly regulated through Alaska Statute Code 06.50.010 et seq.. The Payday Lending legislation covers all the parts of the process concerning:
- Payday Loan amounts
- Payday Loan repayment terms
- Payday Loan online direct lenders
- Payday Loan stores near you
- Payday Loan interest rates and other fees
- Payday Loan collecting practices
- Payday Loan default penalties
- The number of outstanding Payday Loans as well as a cooling-off period in-between etc.
The main eligibility criteria to get approved for a Payday Loan in Alaska are:
- 18 years old or over.
- A legal resident of Alaska with a fixed address.
- Regular income source.
Alaska allows maximum Payday Loan amount. It should be repaid in a minimum of 14 days. The cost of a Payday Loan in Alaska is $20 for $100 borrowed for 14 days taking into account the maximum APR of 520.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.
Alaska Payday Loan Terms and Amounts
Alaska residents who are eligible for a Payday Loan can get $500 cash advance per contract and have no more than 1.00 outstanding loans at a time. The repayment term is capped by a minimum 14 day(s).
However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repairs, home repairs, etc. may seem a sound reason to apply for a Payday Loan in Alaska.
If $500 is not enough, there are always other options to receive the necessary funds in Alaska:
- Unsecured Installment Loans,
- Bad credit Personal Loans,
- Title Loans,
- Check Cashing,
- Pawn Shops, etc.
Alaska Payday Loans online laws
Cash advances (payday loans) from both storefront and online lenders are legal in the state of Alaska pursuant to the Alaska Division of Banking and Securities, P.O. Box 110807 Juneau AK 99811, (888) 925-2521. Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.
You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score.
Alaska Payday Loans interest rates, fees, and other finance charges
The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advances in Alaska is 520.00%. It means that if you borrow a $100 Payday Loan for 14 days the finance charges will be 15% of the amount advanced.
Besides, the total cost of a Payday Loan includes some additional fees. Alaska lending rules allow charging:
$5 origination fee
The law obligates Alaska Payday Loan lenders to provide you with a written disclosure of all the rates and fees in understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.
Alaska Payday Loans direct lenders’ regulations
According to Alaska payday loan laws, all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans.
The main rules regarding Payday loan lenders in Alaska are:
- Essential state license.
- Complete disclosure of all the information concerning the loan such as its repayment terms, rates, fees, etc.
- Besides, Alaska direct lending companies are recommended to educate the customers on the possible issues related to payday loans. Borrowers must be aware of possible risks, default penalties, and other consequences of short-term loans and their alternatives.
- Alaska laws prohibit offensive collecting practices connected with the due loans. Criminal action threats are banned and the lender is required to send a mail notification before starting any legal proceedings against expired contracts.
Alaska Payday Loans consumer information
Besides amounts, rates, and fees, consumers must be also well aware of other details of Payday Loans in Alaska. They include the availability and number of rollovers, extensions, repayment plans, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:
| Rollovers or extensions | 2 rollovers, repayment plan up to 6 months |
| Cooling-off period | 14 business days |
| NSF fee | $30 |
| Other default penalties | Alaska has collection restrictions in cases when payday loans were delayed or were not entirely repaid. The licensee may not collect any fees under AS 06.50.400. |
| Criminal actions | Prohibited |
Look for more detailed information on the official Alaska state regulator website – http://www.commerce.alaska.gov.
Legitimate Payday Loans Online with NO credit check in Alaska
Looking for a legal Payday Loan with No credit check in Alaska? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.
If you don’t want to damage your credit history Alaska law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.
Alaska Payday loans online with no credit check are one of the easiest options for getting quick cash to cope with emergency financial requirements, especially for people with poor credit who need a 2nd chance payday loan.
Does Alaska law allow Payday Loans for bad credit borrowers?
The average credit score in Alaska is 675, which is good. But it doesn’t mean that those who have worse credit can’t apply for a Payday Loan in Alaska.
- First of all, there’re a lot of legit direct lenders in Alaska providing Payday cash advances to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
Legit Payday Loans in Alaska collection practices
If you can’t repay the loan amount plus interest on a due date it means you defaulted on the loan.
Alaska has collection restrictions in cases when payday loans were delayed or was not entirely repaid. The licensee may not collect any fees under AS 06.50.400.
Criminal actions against borrowers in Alaska are entirely prohibited.
If you think that your payday lender violates the Alaska Payday Loans law, you may file a written complaint with Alaska Division of Banking and Securities, P.O. Box 110807 Juneau AK 99811, (888) 925-2521. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determines whether to pursue civil or criminal charges
Alaska Payday Loans news – latest changes
Since 2017 there have been no other changes regarding Payday Loans laws in Alaska. The loan amount, interest rate and fee terms, as well as loan duration, stayed the same.
Alabama Payday Loans historical background
| 2004 | The first law regulating payday lending in Alaska – “The deferred deposit advance lending”, which required that lenders got a license to dispense deferred deposit advance loans, – was signed. |
| 2010 | The updates in the law were made requiring each physical location where these loans are made to have a license. Besides, they limited the average amount of the loan and other key data points. |
| 2016 | the Consumer Financial Protection Bureau rolled out proposed federal-level regulations for payday lending, adding rules that stated lenders must have reasonable evidence that the borrower has the ability to repay the loan. The regulations also restricted the number of rollovers or renewals on payday loans and required lenders to notify borrowers when they withdraw funds from the borrower’s bank account. |
| 2017 | A joint resolution was introduced under the Congressional Review Act to reevaluate and reexamine the Consumer Financial Protection Bureau’s final payday lending rules but still with no results. |