Payday loans in Arkansas
A 17% yearly constitutional cap on consumer loan interest, and the Check-Cashers Act struck down in 2008, make payday loans illegal in Arkansas.
- Payday lending
- Banned
- Max cost
- 17% APR
- Top amount
- None allowed
Are payday loans legal in Arkansas?
No, Amendment 89 of the Arkansas Constitution makes payday loans illegal in Arkansas. For any lender that is not a federally insured bank or government unit, this rule limits annual interest to 17%. The Check-Cashers Act was struck down by the Arkansas Supreme Court in 2008 following a review of sample payday contracts showing annual rates between 168.20% and 558.71%. If a contract goes over 17%, it is void. You may owe no interest and no principal, meaning the original money you borrowed.
Since the 17% limit appears in the state constitution, lawmakers cannot create an exception for payday lenders. Arkansas no longer has any storefront payday shops. Today, the danger comes from illegal loans found on the internet. The Arkansas Attorney General Consumer Protection Division can request that a lender or collector cancel your online payday loan. You can file a complaint online, by mail, or by calling (501) 682-2007.
- Because the 17% cap is part of the state constitution (Amendment 89) rather than just a statute, the legislature cannot make a payday exception.
- Void as to both principal and interest, a contract over the 17% cap may leave the borrower owing nothing.
- The Arkansas Supreme Court ruled on 6 November 2008, in McGhee v. Arkansas State Board of Collection Agencies, that the entire Check-Cashers Act violated the state constitution.
- APRs from 168.20% to 558.71% appeared in the sample payday contracts the court noted.
- The Attorney General has worked since 2008 to end payday lending. Every storefront payday shop has closed, and online lenders are now the risk.
Arkansas payday loan laws
- Law in force
- Arkansas Constitution, Amendment 89 (the cap on lawful interest rates)
- Cited as
- Ark. Const. amend. 89, §§ 3, 6
- Fees under the law
- The rate shall stay at or below seventeen percent (17%) per annum.
- Installment lending limits
- Under Amendment 89, section 3, loans not made by governmental units or by federally insured banks carry a 17% per annum cap. Any contract over that limit is void for principal and interest alike.
Also checked against law.justia.com. Full statute text.
Online lenders that list Arkansas
Three companies we track say they lend in Arkansas: 3 online installment lenders.
All three lenders with a posted APR post a top APR above Arkansas's 17% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
Tribal loans in Arkansas
Online payday loans to Arkansans are usurious in the view of the Arkansas Attorney General. Its office can ask the lender or the collector to cancel a loan that violates Arkansas law.
On the immunity claim tribal lenders make, see are tribal loans legal.
None of the tribal lenders we track lists Arkansas as a state it serves. Browse every tribal lender we track.
Need cash in Arkansas? Ask about cheaper routes
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Arkansas and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Arkansas | Banned | 17% APR | None allowed |
| Louisiana | Allowed | $20.12 per $100 borrowed | $700 is the deferred presentment amount paid to the borrower, and $350 is the small loan amount. For September 1, 2026 to August 31, 2027, OFI's CPI-adjusted maximum for outstanding principal is $740 and $370 respectively. |
| Mississippi | Allowed | $20.00 per $100 borrowed | Per customer at any time, the most you can get is $500 including fees. |
| Missouri | Allowed | Fees and interest can go up to 75% of the loan, and that includes renewals. | You may owe no more than $500 at once to one lender and its affiliates. |
| Oklahoma | Only as installments | None in the law | Across all licensees, one borrower’s outstanding principal from small loans is limited to $1,500 and moves with CPI every other year. Payments due each month may not exceed 20% of monthly income before deductions. |
| Tennessee | Allowed | $15.00 per $100 borrowed | The total face value for outstanding checks is $500. |
| Texas | Allowed | None in the law | State law sets no limit, though city rules can (Houston: 20% of gross monthly income per loan). |
Arkansas loans with no credit check
Installment loan rates: Under Amendment 89, section 3, loans not made by governmental units or by federally insured banks carry a 17% per annum cap. Any contract over that limit is void for principal and interest alike.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Arkansas
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Arkansas Attorney General, Consumer Protection Division.
- Had trouble with a lender? Report the lender.
Sources for Arkansas
- Bank and government loans aside, the constitution sets the maximum loan rate at 17% a year.; A contract above the maximum lawful rate is void, both the principal and the interest.law.justia.com
- The Arkansas Supreme Court found the whole Check-Cashers Act unconstitutional.; The decision in McGhee was issued on 6 November 2008.; APRs from 168.20% to 558.71% appeared in the sample payday contracts in the record.law.justia.com
- In Arkansas, the Attorney General has worked since 2008 to end payday lending.; While all storefront payday shops have closed, usurious loans still exist online.; The AG may request that a lender or collector cancel an illegal loan.arkansasag.gov
- You can file the AG complaint form online, send it by mail, or request one by phone.arkansasag.gov
- Anyone can use NMLS Consumer Access to look up a company by licence number or name.nmlsconsumeraccess.org