News About the Ever-Changing Payday Advance Industry
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No — payday lending is illegal in Arkansas, and the ban is in the state constitution. Amendment 89 caps interest at 17% a year. In 2008 the Arkansas Supreme Court struck down the old Check-Cashers Act as unconstitutional, and the Attorney General then shut down every licensed payday lender — about 156 of them — by 2009. A payday loan above 17% APR is void and unenforceable.
| Status | Prohibited — payday lending is illegal |
|---|---|
| Usury cap | 17% per year (Arkansas Constitution, Amendment 89) |
| Why it's airtight | The cap is constitutional, so ordinary legislation can't undo it |
| How it ended | The Check-Cashers Act was struck down in 2008; lenders shut down by 2009 |
| Illegal loans | Void and unenforceable |
| Enforcement | Attorney General, Consumer Protection Division |
| Law | Ark. Const. Amend. 89 (17% usury cap); former Check-Cashers Act struck down (2008) |
Payday lending is illegal in Arkansas and is enforced by the Attorney General's Consumer Protection Division. To report a violation or an illegal lender, use the online complaint form.
Legal alternatives in Arkansas include a payday-alternative loan from a credit union, an employer paycheck advance, nonprofit credit counseling, or a payment plan with the biller. See our guide to payday loans and alternatives.
A lender can garnish wages in Arkansas only after it sues and wins a court judgment, and federal law then caps how much can be taken. Arkansas does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Arkansas Attorney General, Consumer Protection Division before borrowing. Last reviewed 2026.
Sources
No. The state constitution caps interest at 17%, the Check-Cashers Act was struck down in 2008, and the Attorney General shut down the payday industry.
The 17% cap is written into the state constitution (Amendment 89), so it can't be undone by ordinary legislation.
No. The 17% cap applies to online and out-of-state lenders too — a payday loan offered to an Arkansas resident is unlawful.
The Arkansas Attorney General's Consumer Protection Division.
Arkansas
Despite the state General Assembly’s failure to criminalize high-interest consumer savings account payday loans during the 2007 session, just completed, there is progress on several fronts, according to Hank Klein, founder of Arkansans…
Arkansas
A payday advance loan lender who had two offices in White County has lost an appeal of a state ruling that he violated the law.
Arkansas
With the Legislature’s failure to further regulate providers of payday advance loans for the fourth consecutive session, the battle over the constitutionality of the industry’s practices will shift back to the judicial branch this fall.
Arkansas
A bill that would tighten some rules on Arkansas payday loan lenders won the support of a Senate committee Tuesday. But the measure is a weaker version of a bill that had failed earlier.
Arkansas
A bill to hold Arkansas payday loan lenders to the state usury limit stalled in the Senate Insurance and Commerce Committee when only one of the committee’s eight members voted for it.
Arkansas
A bill to severely limit interest rates charged for payday loans overwhelmingly passed the Arkansas House of Representatives on Thursday, marking the biggest threat to the practice in the eight years that it has been legal in the state.
Arkansas
Market demand for short-term, bad credit payday loans could be the saving grace for Arkansas’ payday lenders, but the industry likely will not escape the legislative session without enduring tougher regulations, a legislator said Tuesday.
Arkansas
Never have lamentations about the plight of the poor been so loud at the state Capitol, and The Arkansas Leader predicts that never will so much harm be done in their name.
Arkansas
Hundreds of AARP Arkansas members dressed in red filled the Capitol rotunda Wednesday to rally support for legislation to create a program to counsel and inform long-term care seekers of their options.
Arkansas
Legislation introduced Thursday morning in the Arkansas House of Representatives would make payday advance lending with high interest rates a crime.