What Is the Maximum Loan Amount in Alaska?
The Alaska regulation allows payday loan amounts of no more than $500 and one $500 loan at a time.
How Are The Loan Costs Regulated in Alaska?
For every $100, all the fees combined should be no more than 15%. And the licensed lenders are allowed to charge a nonrefundable origination fee, with a maximum amount of $5, and a fee that is no more than $15 for each $100 of an advance, or 15% of the total advance amount, whichever is less.
The APR is 435% (“Typical APR based on the average rate for a $300 loan advertised by largest payday chains or as determined by the state regulator, where applicable.” – Center for Responsible Lending 2019)
How Is the Cost Calculated For a $100 Payday Loan in Alaska?
If the term is 14 days:
Loan cost: $100 * 435% * (14 / 365) = $16.7
Total amount to return: $100 + $16.7 = $116.7
What Is The Maximum Loan Term in Alaska?
The Alaska regulation sets out that the minimum term is 14 days but says nothing about the maximum (Alaska Statute 06.50.010 et seq.).
According to rule changes by the Consumer Financial Protection Bureau, starting from July 2020, lenders are not obligated to check whether a borrower is able to pay back a loan. Think carefully before you decide to borrow a payday loan, and manage your money spending reasonably to avoid debt trap.
- The renewal term of a loan should be no less than 14 days.
- There are collection restrictions if a loan is delayed or partially repaid.
- Collectors are under no circumstances allowed to take criminal actions against borrowers.
For more information about statutes governing Alaska payday lending, take a look at the Alaska Division of Banking and Securities website. You can also file a complaint here (using their complaint form) in case your lender has taken any misleading action against you.