What a title loan costs — before Alaska’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Alaska
- Rate cap
- Alaska Small Loans Act (AS 06.20.230): max 3%/month (~36% APR) on unpaid principal up to $850, 2%/month (~24% APR) on $850–$10,000, and the contract rate on $10,000–$25,000 (maximum loan $25,000). AS 06.50 (Deferred Deposit Advances) is the payday-loan law, not a title-loan authorization.
- Key law
- Alaska Small Loans Act, AS 06.20 (rate schedule at AS 06.20.230); general usury AS 45.45.010. No title-pledge chapter exists; AS 06.50 governs payday loans only.
- Enforcement
- The Alaska Division of Banking & Securities licenses Small Loan companies and payday (deferred-deposit) lenders via NMLS. There is no separate title-lender license category; a lender exceeding usury on a sub-$25,000 loan must hold a Small Loan Act license.
Alaska has no title-loan statute at all; the only home for a title-secured loan is the Small Loans Act, which caps interest at 3%/month (~36% APR) on the first $850 of principal — roughly a tenth of a typical title loan’s rate — making high-cost single-payment title lending non-viable.
What it means for a Alaska borrower
A lender cannot make a traditional high-cost single-payment car-title loan in Alaska. There is no authorizing statute, and any title-secured consumer loan is confined to the Small Loans Act’s roughly 24–36% APR ceiling — far below the 100–300% APR economics of storefront title lending — so licensed lenders do not offer it. Online “Alaska title loan” ads are marketing, not proof of a legal high-cost product.
If you already have a title loan in Alaska
A loan that violates Alaska’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Alaska — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Alaska attorney general and the CFPB.
- Ask whether the balance is even collectable under Alaska law before you pay a collector.
Cheaper first — try these before a title loan in Alaska
Title Loans and tribal lenders in Alaska
Many online lenders that market title loans to Alaska residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Alaska residents and how state law applies to them, see the Alaska tribal-lending page.
Tribal loans in Alaska →Frequently asked questions
Are title loans legal in Alaska?
In Alaska, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Alaska?
Alaska Small Loans Act (AS 06.20.230): max 3%/month (~36% APR) on unpaid principal up to $850, 2%/month (~24% APR) on $850–$10,000, and the contract rate on $10,000–$25,000 (maximum loan $25,000). AS 06.50 (Deferred Deposit Advances) is the payday-loan law, not a title-loan authorization.
What can I do about a title loan I already have in Alaska?
Because Alaska effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Alaska — many high-cost online lenders are not. This is general information, not legal advice.