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.
Title loans are Illegal in Arkansas. The laws setm minimum 6 day(s) and maximum 31 day(s) loan terms, but there is no limit on the amount that a consumer may borrow. So, Title Loan terms in Arkansas are 6 - 31 days. The interest rate is capped to 6 - 31 days which is 25%/mon.
In the state of Arkansas payday lending is prohibited. According to H.B. 2021 that “repeals the Check-Cashers Act, §23-52-101 et seq., to protect consumers from unlawful interest rates” and S.B. “, payday loans are illegal in Arkansas. All consumer loans are capped at 17% APR.
Each state different laws regarding payday loans, and payday loans in Arkansas have been illegal since 2008. Although payday loans are illegal in Arkansas, there are lenders who have found ways around this rule, and these lenders can be assumed to be the most predatory and are not recommended.Apr 4, 2020