Payday Loans in Pineville, Arkansas: Why They’re Prohibited
If you’re short on cash and need money to pay bills or cover unexpected expenses, you may have considered taking out a payday loan. But if you live in Pineville, Arkansas, you may be out of luck. Payday loans are illegal in Arkansas, including in Pineville.
What are Payday Loans?
Payday loans are short-term loans with high interest rates. The borrower writes a post-dated check for the loan amount plus fees, and the lender agrees to hold the check until the borrower’s next payday. The loan is usually due in full on the borrower’s next payday, and if they can’t repay the loan, they may be forced to roll it over and incur additional fees and interest.
Why are Payday Loans Prohibited in Arkansas?
Arkansas has a long history of regulating payday lending. In 2008, the state passed the Arkansas Check Cashers Act, which capped interest rates on payday loans at 17%. In 2010, the state Supreme Court ruled that payday lending violates the state’s usury laws, which prohibit loans with more than 17% interest. As a result, Arkansas passed the Arkansas Check Cashers Act, which made payday lending in the state illegal.
What are the Alternatives to Payday Loans in Arkansas?
If you need money quickly in Pineville, Arkansas, consider these alternatives to payday loans:
- Credit union loans
- Short-term loans from bank
- Credit card advances
- Payment plans with creditors
Remember, if you’re in a tight financial situation, taking on debt with a high-interest loan like a payday loan can make things worse in the long run. Before taking out any loan, consider all of your options and make sure you can afford to repay it.
Interesting Facts about Payday Loans in Pineville, Arkansas
- According to the Arkansas Attorney General’s office, the average annual percentage rate (APR) on a payday loan in Arkansas is 391%.
- As of 2019, there were no licensed payday lenders in Arkansas, according to the Arkansas Department of Banking and Finance.
- In 2018, the Arkansas Supreme Court ruled that payday lenders must comply with state laws requiring them to file annual reports detailing the loans they’ve issued and the interest rates charged.
Apply Now
If you live in Pineville, Arkansas, and need financial assistance, TheGuaranteedLoans can help you to find the right lenders for your needs. Please note, however, that we are not a direct lender. We are a connector service that connects borrowers with potential lenders. For more information, visit our website and fill out an online application today.
Conclusion
Payday loans can be tempting when you’re in a tight financial spot, but they come with risks that may outweigh their benefits. Fortunately, if you live in Pineville, Arkansas, there are alternatives to payday loans. If you need financial assistance, explore all of your options and make sure you can afford to repay any loan you borrow.