Alaska Law + Payday Advance = Defending the Borrower?

The inevitable answer to the question how can I get quick cash, is obviously a pay day loan. And if you live in Alaska, know that Alaska law + payday advance are not on the best of terms. That is, not if you are the lender. If you are, however, the borrower, then you will find that the Alaska law on quick cash lending favors you.

Alaska Law and Quick Cash Loans

In Alaska, lenders are required to disclose their finance fees⁄interest rates to the pay day loan borrower so that he or she can make an informed decision on whether to take that quick cash loan or not. Further, there is a cap to the number of times a lender can allow renewals, extensions or roll overs. Although this gives the borrower a definitive deadline to pay the pay day loan, this might be best to 'force' the borrower to be responsible.

Perhaps what's a bit different when it comes to Alaska laws on payday loans is that it has a 'next day change of mind provision' which allows the potential borrower time to reconsider their decision on whether or not to get the loan. But then again, is this really helpful? Studies show that the profile of a typical pay day loan lender is one who needs the cash A-S-A-P. As such, chances of him or her backing out of a loan is pretty slim.

The bottom line is this - lenders must practice good lending habits and be completely transparent with their finance fees, while borrowers need to be responsible by looking for the best lender and then paying their quick cash loans in full come their due dates.