Payday loans are a type of short-term cash advance that borrowers can use for emergency expenses. They are often touted as a quick, easy solution to money problems. However, in Caldwell, Arkansas, payday loans are prohibited by state law.
What Are Payday Loans?
Payday loans are an expensive form of credit, with high fees and interest rates. Typically, borrowers must repay the amount borrowed – plus fees – within a few weeks. In Caldwell, Arkansas, payday loans with interest rates over 17% per year are illegal, effectively banning payday lending in the state.
Why Are Payday Loans Prohibited in Arkansas?
In 2008, Arkansas voters overwhelmingly approved a ballot measure that capped the annual percentage rate (APR) on payday loans at 17%. Prior to the measure’s passage, payday loan stores had proliferated throughout the state. However, these stores charged exorbitant fees and interest rates that left many borrowers mired in debt.
The Arkansas Fairness in Lending Act, passed by the state legislature in 2009, further strengthened protections against payday lending. The law provides that lenders who violate the state’s usury limits may be subject to criminal liability and fines.
Beware of Predatory Online Lenders
Although payday lending is illegal in Arkansas, some online lenders may still target residents of the state. These lenders may advertise payday loans as a way to get quick cash, but they can be even more expensive than traditional storefront loans.
Beware of lenders who claim they can connect you with payday loans in Caldwell, Arkansas. TheGuaranteedLoans is a connector service that can help you find lenders who offer loans that are legal and affordable in your state.
Interesting Facts and Statistics About Payday Loans in Caldwell, Arkansas
- Payday lending is prohibited in Arkansas, meaning that borrowers cannot obtain payday loans with interest rates above 17% per year.
- Residents of Caldwell who are in need of fast cash can explore other legal options, including installment loans and personal loans. These loans typically have lower interest rates and longer repayment terms than payday loans.
- The Arkansas Attorney General’s office regularly investigates payday lending companies that may be violating state laws, including those that target Arkansans through the internet or other means.
Apply Now
TheGuaranteedLoans can help connect you with reputable lenders that offer personal and installment loans in Caldwell, Arkansas. Our online application process is fast and easy, and we work hard to match you with lenders that can meet your unique needs. Remember, we are not a direct lender – we are a loan connector service that helps you find the right lender for your situation. Apply now and get the cash you need today!