Without a doubt about Payday financing is history in Arkansas

Without a doubt about Payday financing is history in Arkansas

MINIMAL ROCK—Arkansans Against Abusive Payday Lending (AAAPL) formally announced today that the final payday loan provider has kept Arkansas, declaring success with respect to dozens of victimized with a predatory industry that drowns borrowers in triple-digit rate of interest financial obligation.

AAAPL hosted a news seminar today near a previous lending that is payday in Little Rock once operated by First American advance loan. very First United states, the payday that is final to stop operations in Arkansas, shut its final shop on July 31. AAAPL released its latest separate research report, which highlights developments over the past year that finally culminated in payday loan providers making hawaii once and for all.

The formal end of payday financing in Arkansas happens eight months following the Arkansas Supreme Court ruled that a 1999 payday financing industry drafted law violated the Arkansas Constitution, and 16 months after Arkansas Attorney General Dustin McDaniel initiated a decisive crackdown from the industry. Payday loan providers charged borrowers triple-digit interest rates—despite the Arkansas Constitution’s interest limit of 17 % per year on consumer loans. The Check-cashers that is industry-drafted Act enacted in 1999 ended up being built to evade the Constitution by contending, nonsensically, that payday advances weren’t loans.

Speakers at today’s news conference included AAAPL Chairman Michael Rowett of Southern Good Faith Fund; Arkansas Deputy Attorney General Jim DePriest; and Arkansas Democratic Party Chairman Todd Turner. Turner, an Arkadelphia lawyer, represented a large number of payday financing victims in situations that eventually resulted in the Arkansas Supreme Court’s landmark ruling contrary to the industry. Continue reading “Without a doubt about Payday financing is history in Arkansas”