This happens
October 5, 2009 | Arkansas, industry, regulation | Comments (2)If you ban brick and mortar stores, payday loan customers will seek loans on the Internet. From a story out of Arkansas:
Although brick-and-mortar payday lending stores have been chased out of Arkansas, Attorney General Dustin McDaniel says another threat persists: short-term, high-interest loans offered over the Internet.
McDaniel says his office has sent about 30 warning letters to so-called payday lenders who have loaned or offered to loan money to Arkansas residents over the Internet.
The last payday lending chain in the state closed all its stores on July 31, ending a decade in which the businesses flourished under a loophole created by the Legislature. The state Supreme Court ruled the loophole unconstitutional last year and the state attorney general’s office filed lawsuits to force the businesses to close.
Officials say the state has not ruled out taking the Internet lenders to court, though no lawsuits have been filed yet.
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How do you prosecute a business that you cannot find?
How do you prosecute a business that you cannot find?