Payday Loans in Alaska State
The Last Frontier is one of the states where you wouldn’t be able to get a payday loan for too long. On average, states allow their residents to hold a payday advance for 4 weeks (i.e. without having their checks cashed.)
In Alaska, you have to pay back in no more than 2 weeks, the state law says. There are many other restrictions in place to help people avoid unnecessary trouble from abusing cash advance in Alaska.
Alaska payday loans are also among the most expensive in the country. You would pay $20.00 for the right to hold a $100.00 loan over fourteen days. That’s an interest rate (APR) of 520%, which is a lot.
- You cannot get more than $500.00.
- The law does not specify how many loans you can have outstanding at the same time.
- You can expect to be charged no more than $5.00 plus either $15.00 or 15 per cent (depending on whichever is less.)
- You are allowed two renewals by the state. A renewal is the same thing as a rollover. If you do not have enough money at due date, you just go to your lender and get a loan renewal. In this sense, payday loans in Alaska are easier to get out of than in other states.
- You are permitted a repayment plan if it happens that you are short on money when the loan due date comes. A repayment plan is gotten from your lender and can sometimes cost money. Whatever you are charged for the repayment plan though, is still going to be much better than all the debt collection fees you would be responsible for if you neither have money, nor a way to pay back (i.e. a repayment plan.)
- As for the cooling-off phase – the amount of time you have to wait in between loans, it is not specified by the law. So essentially, you can get a payday advance in Alaska any time you like, regardless of whether you already have outstanding loans.
The government restricts the charges you may face during debtor’s collection of money. You cannot be liable for more than a $35.00 NSF fee and court costs of no more than $700.00 (only if stated in the loan agreement though.)
What If You Don’t Have Money
The lender is supposed to take action when the debtor (you) does not have the money they previously claimed they would. In Alaska though, same as in many other states, the government does not allow courts to persecute payday advance loan debtors. In other words, all criminal procedures against the debtor are prohibited, and you wouldn’t be tried as a criminal if you happen to mismanage your finances and outstanding payday loans (Alaska.)
There is one scenario though, when you could be tried as a criminal. That would be if your bank account (the one you tied your payday loan to) is closed. It would then appear that you lied to the lender regarding your bank account, and that’s punishable.