Arkansas Payday Loans - What you need to know about Arkansas payday loans
Arkansas State Map
Many states around the country have not only legalized, but legitimized the cash advance industry through regulation and legal applications; what was once a rogue business model has now become a viable industry across our country and around the world. In the state of Arkansas, Ark. Code. Ann. § 23-52-101 et seq. sets forth guidelines for the proper conduct of an Arkansas payday loans business. These guidelines dictate that a payday loan lender in the state has to adhere to very direct stipulations in terms of how old they conduct their day-to-day lending operations.Some of the most important parts of this legal legislation are the lending terms, as discussed below:
Arkansas State Flag
Minimum and maximum term lengths for Arkansas payday loans - in order to make sure that a consumer has sufficient time to repay a cash advance, the state of Arkansas has instituted minimum and maximum terms for cash advance loans to be repaid. The minimum timeframe allows for repayment in six days - from the time of the funds being transmitted to the borrower. This takes into account that a borrower is requesting funds midway through a two week pay period, and the funds are being transferred at the beginning of the second week; nationally, this is the point where most consumers, who are living from check to check, find themselves in a financial bind of one form or another. Typically this the midway point between checks is when things start to get a little stretched financially. The six day minimum fits into that low point and finances, and simultaneously, the six day minimum requirement also stops the consumer from borrowing, and the lender from lending for one or two days at what would be considered pricey rates for such a short term. The maximum length that a consumer can take out an Arkansas payday loan for, on the other hand, is 31 days; this rule takes into account the nature of some consumer's income - realizing that not everyone is paid on a one or two week schedule, the state took into account that at some point consumers on fixed incomes may need to take advantage of this form of emergency cash as well. By setting the maximum term length at 31 days, the state of Arkansas has also given the consumer a little bit of leeway when it comes to repayment of the average two week loan. With the ability to request up to 31 days to repay a cash advance, consumers can effectively decrease any inconvenience connected to repaying a loan in such a short time.
Arkansas payday loans