Alaska Payday Loan Law, Stats and History

Alaska Payday Loan Regulations
Legal Status
Interest Rate (APR)
Maximum Loan Amount
Minimum Loan Term
14 days
Maximum Loan Term
Not Specified
Number of Rollovers
Finance Charges
15% of the amount advanced
Statute of Limitations
3 years (from the last payment)
Database Loan Tracking

According to the existing legislation, payday lending is legal in Alaska.

Alaska imposes a $500 amount limit on payday loans offered in the state. Payday loans can be taken for the period not less than 14 days with the maximum finance charge of 15% for every $100 and 435%* APR. One renewal is allowed and a cooling-off period of 14 business days should pass before a new loan. Any NSF fees are prohibited; all criminal actions are prohibited as well.

Nowadays payday lending is available to every resident of Alaska. However, the state regulations of payday lending are pretty tough. Besides, there are fewer storefronts in Alaska than in other states and, thus, the popularity of online vendors is higher.

Alaska Payday Lending Statutes

Alaska Statute Code 06.50.010 et seq. for more than a decade has stayed the only statute regulating payday lending in Alaska. It contains all the information concerning the operation of payday lending companies as well as state policy on the subject.

In Alaska, payday lenders operate under the term of “deferred deposit advance lenders“.

Regulations apply to both online and storefront loan providers. In order to operate in the state, lenders have to comply with the following regulations:

  • Any person operating as a lender, even those doing business from outside the state of Alaska must meet the requirements of licensure with the Division of Banking and Securities.
  • A separate and unique license must be procured for any internet site or physical location that a person uses for their lending business.
  • All lenders must disclose all the loan information (terms, APR for 30 days for each $100, APR for 14 days for each $100, fees, all as a dollar amount, repayment period) before the loan documents are signed.

Loan Amount in Alaska

Alaska state law allows payday lending in the amount not exceeding $500.
One $500 loan at a time is allowed.

Rates, Fees and Other Charges in Alaska

  • Finance charges and fees should not exceed 15% for every $100 of the amount advanced.

Under Alaska regulation, any licensed lending is permitted to charge an origination fee, which is refundable, for an amount no more than $5. A fee is also able to be assessed that is no more than $15 for every $100 of a given advance, or 15% of the full amount advanced, whichever is the lesser of the two. Alaska Statute 06.50.010 et seq.

  • APR equals 435% (*According to the Center for Responsible Lending 2019: “Typical APR based on the average rate for a $300 loan advertised by largest payday chains or as determined by the state regulator, where applicable”).

Maximum Term for a Payday Loan in Alaska

  1. The minimum period of payday loan is 14 days (Alaska Statute 06.50.010 et seq.)
  2. Alaska state law does not contain any information about the maximum loan term.

Consumer Information

From July 2020, lenders are not required to check a borrower’s ability to repay a loan.
Be careful, evaluate your financial situation, don’t get into a debt trap.
The rule was changed by the CFPB.

  • The minimum renewal term of an advance is 14 days.
  • Alaska has collection restrictions in cases when payday loans were delayed or were not entirely repaid. The licensee may not collect any fees under AS 06.50.400.
  • Criminal actions against borrowers in Alaska are entirely prohibited.

More information about payday loan laws and regulations in Alaska can be found on the official Alaska Division of Banking and Securities website.

In case of any fraudulent actions on the part of a payday lender, customers can file a complaint by sending a complaint form to the Alaska Division of Banking and Securities.

A borrower may level a complaint against a lending institution with the Division of Banking and Securities by completing the complaint form. The form must then be submitted through the Divisions web portal along with any supporting documents. A print submittal is also allowable, and would only need to be mailed to the Anchorage office of the Division with supporting documents.

Or you can also contact the Office of the Attorney General Consumer Protection Unit.

Regulator: Complaints & Information

Alaska Division of Banking and Securities

Address: 550 W 7th Ave #1850, Robert B. Atwood Building, Anchorage, AK 99501
Phone: 907-269-8140 or 888-925-2521 (toll free)
Fax: 907-269-8146
File a Complaint:

Number of Alaska Consumers Complaints by Topics

According to CFPB Consumer Complaint Database

  • Fraud and threat ( 5 )
  • Charges from account ( 4 )
  • Not requested loan ( 2 )
  • Lender is not available ( 1 )

The Quantity of Top Alaska Stores by Cities

The History of Payday Loans in Alaska

  • 2004 – The first law regulating the payday industry in Alaska passed. Among other things, the law required that lenders got a license to dispense deferred deposit advance loans in Alaska.
  • 2010 – The law was updated; apart from the requirements for licensing each physical location that issued loans ought to have a license. Also, the number of loans and the average amount of the loan are set. The disclosure of terms, APR, fees, and charges “expressed both as a dollar amount” and other points were added to the requirements.
  • 2016 – The Consumer Financial Protection Bureau (CFPB) proposed a Payday Loan Rule that hasn’t yet fully come into effect (expected in November 2020).
  • 2017 – The CFPB’s Payday Loan Rule was proposed for reevaluation and reexamination under the Congressional Review Act. No news so far.
  • 2010-2019 – The loan amount, interest rate and fee terms, as well as loan duration, stayed the same
  • 2023 – Alaska’s HB 145 was introduced to address high payday loan interest rates, proposing a cap at 36% annually. However, as of the latest update, this bill has been prepared but not yet passed..

[Updated As of March 2024]

Was this information helpful?