Payday loans in Alaska

Are payday loans legal in Alaska?

Payday loans are legal in Alaska. A licensed lender may lend up to $500 and charge no more than Origination Fee of $5 + the lesser of $15 per $100 or 15%.

The governing law is Alaska Stat. §§ 06.50.010. Alaska Division of Banking and Securities licenses lenders and takes complaints.

Loan limits in Alaska

• Loan size: up to $500
• Loan term: Minimum of 14 days

What a payday loan costs in Alaska

State law sets the price rule: Origination Fee of $5 + the lesser of $15 per $100 or 15%.

On a $100 loan repaid after 14 days, the most a lender may charge is $20. You would repay $120, an APR of 521%. For comparison, most credit cards charge between 20% and 30% APR.

Before you deal with an online lender

1. Look the company up with Alaska Division of Banking and Securities. No license, no loan.
2. Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
3. Read the agreement for the finance charge, the APR and the due date before you give out bank details.

If you cannot repay a loan in Alaska

Contact the lender before the due date and ask for a payment plan in writing. On criminal threats: A licensee may not threaten an advance recipient with criminal action as a result of the recipient’s default. If a lender or collector breaks the rules, file a complaint with Alaska Division of Banking and Securities and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Alaska

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives or work out a loan’s price with the cost calculator.

Recent change to Alaska law

Senate Bill 39, which would have capped payday loans at 36% APR, passed the legislature but was vetoed by the governor, so the existing rules still apply. (source)