Best Loans in Arkansas, Payday, Auto Title Laws of October 2024
In 2008, Arkansas’ Attorney General’s Office began a crusade to eliminate all forms of payday loans in the state to protect consumers from predatory payday loans. And while storefronts have been shut down, online payday lenders still use loopholes to skirt the law and provide financing.
When Arkansas’ Supreme Court ruled that the Check Cashers Act conflicted with its state-imposed usury cap, payday lenders were told to stop issuing new loans and void all existing loans. Soon after, Arkansas voters agreed to amend its state constitution and adopt a 17% interest rate cap for all consumer loans – including installment loans.
If lenders didn’t comply, the penalties were severe.
Any loan issued with a rate that exceeded 17% was immediately deemed void of both principal and interest. If caught, the lender would not be able to collect anything from the borrower. It would be as if the loan didn’t exist.
However, there are exemptions.
Loans issued by national banks and FDIC institutions headquartered in Arkansas are exempt from the 17% cap. Essentially, they can charge whatever interest rate they want. It’s been controversial because many national banks now offer small loan products similar to payday loans.
Best Bad Credit Loans in Arkansas of October 2024
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