What you need to know about payday loans in Alaska
More than a third of payday loan borrowers in Alaska are in arrears, according to data released Tuesday by the state Department of Revenue.
That’s up from the 22 percent that the state reported in 2014.
In 2015, only 16 percent of payday loans borrowers were in arres, but that number has gone up to 17 percent this year, according the data.
Arrears are when a borrower cannot pay their monthly bills.
They are also known as “lapse payments.”
Payday loan debt is a big problem in Alaska.
About 8.5 million borrowers are at risk of defaulting on their loans, according in a report from the National Consumer Law Center.
The payday loan industry is growing, and consumers are using them as a way to pay off debt, but the financial system has not always been so supportive.
The number of payday lenders in Alaska has grown dramatically over the last few years.
According to the data, the industry has expanded from 3 to 15 firms in 2015.
There are now more than 1,200 payday lenders operating in the state.
Many payday lenders are owned by banks and are not federally insured.
The financial industry in the United States is trying to fix that problem by regulating the industry, which has been a growing concern in recent years.
“It’s really important that the federal government recognizes that payday loans are a financial service and that they should be regulated the same way that banks are regulated,” said Alanna Trenholz, the chief of the state’s Department of Finance.
Trenhols report showed that more than $5 billion in payday loans were issued in Alaska in 2016, a significant increase from $1.2 billion in 2015 and $835 million in 2014, when there were just three payday lenders.
The department has been working to regulate the industry.
It issued regulations that require lenders to offer a consumer protections package.
The agency also worked with the Federal Trade Commission to get more consumer protection rules in place.
Tannenbaum said the payday loan boom has created a problem.
“The financial sector is really at a crossroads in terms of how to handle this, and that’s why payday lenders have been so hard to regulate,” she said.
She said that the payday lending boom has also created an opportunity for payday loan companies to make money.
“If we were to have a regulated industry and not a regulated financial industry, then we would have a much better chance of solving the problem,” Trenholm said.