Alaska has safe harbor laws for cash advance lenders; these authorize loans with an interest rate in the triple-digit range and based on checks written on borrower's bank accounts. Its legislation does not specify, however, the maximum number of loans that a payday loan borrower can have pending at one time. Cash advance creditors are barred from bringing a criminal action for collection unless the customer's check was returned as a result of a closed account.
The maximum amount that a check cash advance consumer can borrow is $500.
The minimum loan term is two weeks.
Alaska allows two renewals or rollovers.
A payday advance store may not charge an origination fee higher than $5. It is also prohibited from charging more than $15 per $100 advanced or 15 percent of the payday loan's total, whichever is lower. A $100 loan over a 14-day period will carry a finance charge of $20.
The annual percentage rate on a two-week loan for $100 is 520%.