Arkansas Payday Loan Law Summary
Debt Consolidation Care Community Members have summarized the Arkansas Code for payday loan (Title 23, Subtitle 2, Chapter 52) to help AR 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?
- Lender is charging excessive fees.
- Is it important to do business with licensed lender? How do I check?
- How many rollovers are allowed in AR?
- Check returned to the lender due to NSF; what actions can they take?
- Where to file my complaints against payday loan companies?
- My question is not listed here, I am looking for something else.
How much can a licensed lender charge?
Not more than 10% of the face value of the check + $10 additional fees + $5 set up fees.
How do I know if the lender is licensed in AR or not?
According to Arkansas Code "No person shall engage in the check-cashing business without first obtaining a permit from the State Board of Collection Agencies in accordance with this chapter. A separate permit shall be required for each location from which such check-cashing business is conducted." So license is a must for the companies offering check-cashing business or payday lending whatever.
Search the database of licensed lenders maintained by Arkansas State Board of Collection Agencies.
How many rollovers or extensions are allowed?
No rollovers/renewals/extensions are allowed at all.
What if my check returns NSF?
Check casher/payday lender can apply civil right to recover the check along with reasonable attorney's fees, provided the attorney is not an employee or salaried person of the lender/check casher.
However, check cashers can initiate criminal prosecution against customers only if:
The checking account is closed by the customer during the loan term and by the customer itself.
Bad check law of Arkansas states that the maker of a bad check should receive a written notice and $ 20 can be added as fees, failure to pay might result in criminal prosecution, however, it depends on several factors like if the charges are proper, if the company is licensed or not, if there is written agreement signed by both the parties or not and so on. If a company threats you for criminal offense, it's better to consult a local legal aid office.
Where to forward complaints or queries?
Arkansas State Board of Collection Agency supervises the Check Cashing Companies, any queries or complaints should be forwarded to them.
I am looking for something else.
To get help from the community members, just put your problem in the community forums and let members guide you.
Visit the home page for Arkansas members for more debt and credit related information.
