Payday Loans in Alaska
- Nickname: The Last Frontier
- Population: 731,545
- Capital: Juneau
- Website: Alaska.gov
The great state of Alaska is known primarily for its beautiful landscapes, its very long or very short days (depending on the time of year), and its proximity to Russia. Because of its diverse economy, Alaska residents bring in more income than most others in the nation (2018 figures show that Alaskans made, on average, $74,346 for the year, which is $12,409 more than the national average).
In addition, the Last Frontier has one of the lowest poverty rates in the United States (10.9%). While that is generally a good thing for residents, it still means that more than 78,000 people in Alaska are having trouble making ends meet. In fact, the average amount of credit card debt in 2019 was higher among Alaska residents than it was for folks living in other areas of the country ($8,026 vs. $6,194).
Payday Loans in Alaska
A payday loan is a short-term loan typically for smaller amounts of money. Each state has a different cap on how much people can borrow with this type of loan.
In Alaska, payday lenders are called “deferred deposit advance lenders” and are regulated by the state’s Division of Banking and Securities. Lenders in Alaska must be licensed by the Division of Banking and Securities, and data shows that there were 26 deferred deposit advance lenders licensed by the state, serving over 17,000 Alaskans. The average deferred deposit advance borrower takes out around $2,000. One in five Alaskan borrowers who use these types of loans end up defaulting. A report from the Center for Responsible Lending indicates that residents in Alaska pay $6 million annually for payday loan fees and interest.
Consumer Protection in Alaska
The Alaska Consumer Protection Act outlines examples of illegal conduct: using deception in the sale of goods and services or misrepresenting benefits or characteristics of a good or service. The Attorney General of Alaska reviews all consumer complaints and can help stop illegal conduct, assist consumers and businesses with recovery of damages between $1,000 and $25,000 or beyond and other relief. If you feel that a lender isn’t following Alaska’s regulations on lending, you can get support from state agencies and nonprofits. There are many state and national resources to help you if you are a victim, some of which are shown below:
Office of the Attorney General Consumer Protection Unit
- Website: www.law.state.ak.us/consumer
- Phone: (907) 269-5200 or (888) 576·2529
State of Alaska Department of Commerce, Community and Economic Development Division of Banking and Securities
- Website: www.commerce.alaska.gov/web/portals/3/pub/Complaint_Form.pdf
- Phone: (907) 269-4584