Arkansas Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Arkansas and what amounts, interest rates and repayment terms are set by the state's Legislation.

hawaii payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Legal
Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

$600
Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

32 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

459.00%
Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

Not more than 15% of the loan amount  

Loans for ANY  NEEDS
APR from 4.99%

You must have heard that Payday Loans are prohibited in Arkansas, you may find other options to get instant cash advance permitted by the state's laws. Study the rules and regulations concerning short-term loans in Arkansas. Find available alternatives.

 

Table of Contents:

Are Payday Loans legal in Arkansas?

Why are Payday Loans illegal in Arkansas?

Arkansas Payday Loans Laws

Arkansas Payday Loans online laws

Does Arkansas law allow Payday Loans for bad credit borrowers?

Arkansas Payday Loans news  - latest changes

Arkansas Payday Loans historical background

Arkansas Payday Loan alternatives

Are Payday Loans legal in Arkansas?

Short-term Payday Loans in Arkansas are illegal since 2011 according to

. These documents also cap the APR at 17%.

Remember that regardless of this, there are other loan options available to cover your urgent expenses fast.

Read more: Payday Loans in Arkansas

As we can see, Arkansas Attorney General, 323 Center Street, Suite 200, Little Rock, AR 72201 caps all short-term loans at 17.00% APR. 

For other details  and information on Payday Loans in Arkansas contact Arkansas Attorney General, 323 Center Street, Suite 200, Little Rock, AR 72201.

Why are Payday Loans illegal in Arkansas? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in Arkansas Payday Loans are  illegal since 2011 when the Check Casher Act was passed and the 17% APR cap was set. It caused most lenders stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

Arkansas Payday Loan laws 

Payday Loans in Arkansas share the same characteristics as short-term cash advances in other states but due to high cost and short repayment terms they are prohibited in Arkansas. Lenders can't legally operate because of the rate cap set by the authorities. But we can let you compare other options available in Arkansas.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Arkansas:

  • Unsecured Installment Loans,
  • Bad credit Personal Loans,
  • Title Loans,
  • Check Cashing,
  • Pawn Shops, etc.

Arkansas Payday Loans online laws 

Usually, the state's Payday Loan laws concern both store front and online lenders. Online lenders should also operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to Arkansas Attorney General, 323 Center Street, Suite 200, Little Rock, AR 72201 for law violations. 

For years, the Attorney General’s office has worked hard to eliminate all forms of payday lending in Arkansas. However, not all the efforts were successful as usurious loans are still available online (regardless of the fact that storefront payday lenders are no longer available in Arkansas).

Does Arkansas law allow Payday Loans for bad credit borrowers? 

The average credit score in Arkansas is 657, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for the neessary cash advance in Arkansas. 

  • First of all, there're some companies in Arkansas providing similar to Payday loans services to borrowers with both good and bad credit score.
  • 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 Loans, or bad credit Personal Loans.

Arkansas Payday Loans news  - latest changes

There haven't been any relevant changes in Payday Loans regulations lately. Since they were made illegal the actions of the Attorney General were all aimed at stricter regulations which led to the last Payday lending company stop their work in 2009.

Still, there are other ways to get instant cash advance similar to Payday Loans in Arkansas. For example, the U.S. Bank offered a Simple Loan product in Arkansas. 

Arkansas Payday Loans historical background 

The history of Payday Loans in Arkansas
1999 The Check Cashers Act was passed to regulate check cashing and deferred presentment transactions businesses.
2000s Rent-a-Bank method was widely used to provide high cost short-term loans.
2006 The Military Lending Act effectively capped payday loans offered to the military at 36% APR.
November 6, 2019 The Arkansas Supreme Court ruled that the 1999 Check Cashers’ Act was illegal which put an end of the payday loan industry in Arkansas.
2008 - 2009 The Arkansas Attorney General issued cease and desist letters to the state’s registered Check Cashers and took further action on illegal brokers.
August 11, 2009 The last Payday Loan company closed.
2018 Some banks started offering loan products similar to Payday Loans with direct deposits with 70-88% APR.

Arkansas Payday Loan alternatives 

If you're looking for instant cash advance in Arkansas but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for an Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Apply for Arkansas Tribal loans. Tribal lenders can avoid state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing from a bank or credit union. U.S. Bank, offers a Simple Loan product in Arkansas.
  • Qualify for one of Federal or Arkansas state government assistance programs: the Home Energy Assistance Program (HEAP) or Food Stamp Program, etc.

Loans for ANY  NEEDS
APR from 4.99%

Loans for ANY  NEEDS
APR from 4.99%

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