New Payday Loan Lawsuits Break Out in Arkansas
By J.J. CameronPayday Loan Writer
The Arkansas legislature may not be ready to do away with payday loans, but the state has expanded a payday loan lending lawsuit to include two more storefront lenders accused of charging exorbitant interest rates on loans, the attorney general's office announced Wednesday.
The action added Money in A Flash.net payday loan locations in Little Rock and West Memphis to the lawsuit filed Feb. 28 against the firm's Jonesboro location. The attorney general's office also said it filed a separate lawsuit against MagnoliaMoney.net, a similar operation in Magnolia.
All outlets in question aree accused of charging annual percentage rages of up to 520 percent on their payday cash loans of $100, $200 or $300, disguising these fees as rebates. Customers were required to pay biweekly payments to the company - and if payments were not made on schedule, the money was withdrawn directly from customers' bank accounts, according to the state.
The lawsuit accuses the faxless payday advance companies of misrepresenting the contracts as agreements for Internet access instead of high-interest loans. The attorney general's office is seeking an injunction to stop the payday loans, restitution for consumers and civil penalties.
