Under Arkansas law, a payday loan at an interest rate of triple digits is prohibited by usury caps or small loan laws. Single payment loans by check cashers are permitted so long as there is check holding. A check cash advance lender cannot issue more than one loan at a time. However, borrowers can obtain two separate cash advance loans within 72 hours. A creditor is barred from bringing a criminal action against a consumer unless a stop payment was made or the check was returned because of a closed account.
The maximum amount that a payday loan business can lend a customer is $400.
In Arkansas, the loan term that a cash advance lender can offer ranges from a minimum of 6 up to a maximum of 31 days.
Borrowers are not permitted to renew or consolidate cash advance loans.
A payday cash advance business cannot charge fees in excess of 10 percent or $25 of the face value of the cash advance. Furthermore, any additional fee (excluding a $5 i.d. card) must not be more than $10. The finance fee for a two-week loan in the amount of $100 is $22.22.
The annual percentage rate for a $14 day cash advance loan is 579%.