Alaska Payday Loan Law Summary
Debt Consolidation Care Community Members have summarized the Alaska Code for payday loan (Title 6, Chapter 50) to help AK members get out of payday loan traps. Members of this community have helped many to get their payday loans marked as paid in full. Read the Success Stories to know how to deal with the payday loan companies.
What is your problem?
- My lender is charging excessive fees.
- How do I know if the lender is licensed in AK or not?
- I have defaulted on payday loans.
- Check returned to the lender due to NSF/Closed account?
- Where to file complaints against predatory payday loan companies?
How much can a licensed lender charge?
They can charge non-refundable $5 as initial charge and the minimum of either $15/$100 or 15% of the total loan amount.
Minimum loan term is 14 days and renewal for more than 2 consecutive times is prohibited.
How do I know if the payday loan company I am dealing with is licensed in Alabama or not?
As per the Deferred Deposit Advances code of Alaska, any one willing to do business with Alaskans should have license under Chapter A.S. 6.50
There should be a written agreement prior to the transaction and it should be done in a specific format prescribed by State Banking Department. The agreement should clearly state all the details of the loan including chargeable fees in terms of dollars and as annual percentage rate as well. Download the database of licensed lenders:
What happens when a consumer defaults in the state of Alaska?
Before assigning the debt to third party and taking legal action, the lender should call the defaulter customer at reasonable time to talk about the outstanding loan. An extended payment plan can be offered to retrieve the loan amount; however, no additional charge should be added, except charges for bad checks if any.
What happens if the check returns?
Bad checks should qualify the definition mentioned within AS 09.68.115 which says, plaintiff must send a written notice for payment to the issuer of the check 15 days before starting the action. Otherwise, legal action cannot be started.
Fees for bad check can be $30 + the amount of the original check.
Note: If a user chooses to close his/her account, show proper reason to your banking, otherwise it will be considered as dishonoring check.
Where to forward the complaints and queries?
Alaska Department of Community and Economic Department regulates Deferred Advance or Payday Loan industry, any queries or complaints shall be forwarded to them.
Visit the home page for Alaska members for more debt and credit related information.
