The payday loan laws in the state of Arkansas are unique and rather disheartening to the borrowers welfare. While payday loans are technically illegal in Arkansas, they are still in business and growing by the day.
Arkansas law prohibits any lender to charge more than 5 percent annually for and given loan agreement.
Since the APR of payday loans is usually around 390 to 780 percent annually, yes, you read that right, this makes payday loans illegal in this state.
Many law suites have been created out of this law and payday loan companies had to do something about this problem so the convinced the Arkansas legislature to introduce and pass the Act 1216 of 1999, the “Check-Cashers Act,” codified at ARK. CODE ANN. § 23-52-100
Alabama like many other states is experiencing the same financial situations as everyone these days.
Alabama Payday loan laws are at the rate of 15.5 percent, and the average loan is 10 to 31 days.
What is interesting is this state offers you the option of paying it all off at once after one roll over, or they can set you up with 4 equal payments over 4 months on any outstanding balance after the one time roll over.
Remember, the interest rates do not drop, and it can be quite costly by the time the loan is finally paid off, and any insufficient funds when checks are presented will be subject to additional fees.