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Alaska Payday Loans: Law, Regulations, and Overview

Payday loans are legal in Alaska, but they are subject to regulations to protect borrowers. Here's a breakdown of what you need to know:

Legal Status: Payday lending is legal in Alaska.
Interest Rate (APR): The maximum annual percentage rate (APR) is 435%.
Maximum loan amount: Borrowers can access payday loans of up to $500.
Minimum loan term: The minimum repayment period is 14 days.
Maximum loan term: Alaska law doesn’t specify a maximum loan term.
Number of rollovers: Borrowers are allowed two rollovers.
Finance charges: Lenders can charge 15% of the advanced amount.
Statute of limitations: The statute of limitations for payday loans in Alaska is 3 years from the last payment.
Database loan tracking: Alaska doesn’t require loan-tracking databases.

About Alaska payday loans

Alaska allows payday lending, but it has strict regulations. The state imposes a $500 limit on loan amounts with a maximum finance charge of 15% for every $100 borrowed, resulting in a high APR of 435%.

Borrowers are permitted one renewal, but a 14-day cooling-off period must pass before obtaining a new loan. Notably, NSF (Non-Sufficient Funds) fees are prohibited, and any criminal actions against borrowers are also forbidden.

Payday lending is accessible to all Alaska residents, but the limited number of storefronts has led to the popularity of online lenders in the state.

Alaska payday lending statutes

Payday lenders in Alaska operate under the term “deferred deposit advance lenders.” Both online and storefront lenders must comply with regulations, including:

  1. Obtaining a license from the Division of Banking and Securities.
  2. Disclosing all loan information before loan documents are signed.
  3. Limiting loans to a maximum of $500 at a time.

Rates, fees, and other charges in Alaska

Finance charges and fees are capped at 15% for every $100 borrowed. An origination fee, refundable up to $5, and a fee of no more than $15 for every $100 advanced or 15% of the total amount advanced, whichever is lower, are allowed.

Maximum term for a payday loan in Alaska

The minimum payday loan term is 14 days, but Alaska law doesn’t specify a maximum term.

Consumer information

As of July 2020, lenders are not required to assess a borrower’s ability to repay a loan, so borrowers must exercise caution to avoid falling into a debt trap.

Alaska has restrictions on collections in cases of delayed or unpaid payday loans. Collecting fees under AS 06.50.400 is prohibited, and criminal actions against borrowers are entirely banned.

To file a complaint against a payday lender, borrowers can submit a complaint form to the Alaska Division of Banking and Securities. The Division offers an online portal for submissions, and complaints can also be mailed to their Anchorage office. Alternatively, borrowers can contact the Office of the Attorney General Consumer Protection Unit.

Regulator: complaints & information

Alaska Division of Banking and Securities


The high APR of 435% in Alaska’s payday lending industry can pose significant financial risks to borrowers. While payday loans can provide short-term relief, it’s essential for consumers to exercise caution and explore alternative financial solutions whenever possible to avoid falling into a cycle of debt.

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