Understanding Payday Loans in Tumbling Shoals, Arkansas
When you’re in a financial emergency, an easy solution could be taking a payday loan. However, if you’re in Tumbling Shoals, Arkansas, you should know that payday loans are prohibited by state law. In this article, we will look at payday loans and explore how they affect consumers in Tumbling Shoals.
What are payday loans?
Payday loans are short-term loans that carry high-interest rates, designed to provide quick cash to borrowers who are in need of money before their next payday. The loans, which typically range between $100 and $1,000, are usually repaid in a lump sum within two weeks of borrowing.
Why are payday loans prohibited in Tumbling Shoals, Arkansas?
Payday loans are prohibited in Arkansas due to their high-interest rates, and many consumer protection organizations argue that payday loans are predatory in nature and exploit financially vulnerable people. The law protects borrowers from the harmful effects of payday loans by imposing strict regulations on lenders.
What are the consequences of taking a payday loan?
Payday loans carry high-interest rates and fees, which are often so high that borrowers are trapped in a cycle of debt. If a borrower cannot repay the loan on time, the high-interest rate means that the amount owed can quickly spiral out of control, leading to further financial distress.
Interesting Facts about Payday Loans in Arkansas
- In Arkansas, the maximum interest rate on loans is 17% per annum. Payday loans can carry annual percentage rates of up to 300%, making them up to 18 times more expensive than traditional loans.
- In 2015, the Arkansas Attorney General sued a payday lender for violating Arkansas’ usury laws. The lawsuit resulted in a $750,000 settlement and an agreement to no longer do business in the state.
- Arkansas is one of 18 states in the United States that prohibit payday lending.
Connect with a Lender
If you’re in Tumbling Shoals, Arkansas, and in need of a loan, payday loans are not an option. However, TheGuaranteedLoans is here to help you connect with a lender that offers installment loans, title loans, and other loan products in the state of Arkansas. While we don’t lend money directly, we’re committed to helping you find a lending partner that meets your needs.
Apply Now
To apply for a loan, visit our website where you’ll find an easy-to-use online application form. Fill in your details, and we’ll send your application to our network of lenders. Once you’re connected, a lender will contact you to discuss your loan options.
Conclusion
While payday loans are illegal in Tumbling Shoals, Arkansas, it’s important to be informed about them. If you need cash fast, consider an installment loan or a title loan, which are legal in the state. Remember to always read the terms and conditions of any loan before you borrow and shop around for the best rates.