Let’s not forget Arkansas
October 31, 2008 | Arkansas, industry, local issues, regulation, states | Comments (0)This is a better summary than we provided yesterday of developments in Arkansas:
The Arkansas Check-cashers Act violates the state constitution and should be struck down, Arkadelphia lawyer Todd Turner told the Arkansas Supreme Court on Thursday.
It was the third time in three years that the state Supreme Court has heard arguments in the same lawsuit that questions the constitutionality of the 1999 law. In 2005 and last year, the Supreme Court sent the case back to Pulaski County Circuit Court.
Hearing today in Arkansas
October 30, 2008 | Arkansas, local issues, media coverage, states | Comments (0)Well, now that most of the payday lenders in Arkansas have closed, the legal issues are being fought out:
The Arkansas Supreme Court was scheduled to hear oral arguments Thursday in a lawsuit challenging the 1999 Check Cashers Act, which opponents say violates the state constitution by allowing payday lenders to make consumer loans with interest rates of more than 17% annually.
A Pulaski County judge last year ruled that the act was constitutional.
The Payday Pundit will try to find out where this is going.
Unintended consequences
October 10, 2008 | Arkansas, Texas, customers, industry, media coverage, states | Comments (0)The Attorney General of Arkansas has created business for payday lenders in Texas. Yes, people are crossing the border to Texas because of the crackdown on payday lending in Arkansas.
Maybe people need access to credit
October 10, 2008 | Arkansas, industry, media coverage, states | Comments (0)Thirty-three payday lenders are still operating in Arkansas and the do-gooders are aghast. It’s a good thing there’s nothing else to worry about these days.
Arkansas must have a booming economy
September 24, 2008 | Arkansas, alternatives, industry, media coverage, states | Comments (0)Therefore the state can afford to close businesses that pay taxes and employ citizens at good wages.
The “city council mindset”
August 7, 2008 | Arkansas, local issues | Comments (0)An interesting letter to the editor in the Baxter Bulletin in Arkansas touches on motivation of city councils to ban payday lenders and other businesses they deem “aesthetically unacceptable.” Definitely an interesting take on something we’ve seen repeated across the country in city council decrees — it’s worth a read.
“Holding on” in Arkansas
July 31, 2008 | Arkansas, regulation, states | Comments (0)From the Arkansan Leader:
The 136 {Payday lending stores} still in operation include the 55 operating in defiance of Attorney General McDaniel’s order, and 81 that currently operate outside of state regulation.
McDaniel and his staff have said these 81 will face scrutiny and potential action given the Attorney General’s long-term goal that all payday lenders in Arkansas cease operations.
What job is Arkansas Attorney General Dustin McDaniel angling for?
July 17, 2008 | Arkansas | Comments (0)In an update to the Arkansas report from yesterday was this little nugget at the end of an Arkansas News Bureau story:
Each and every payday lender operating in the state of Arkansas is currently under investigation by the AG’s office… It is our goal to stamp out payday lending in the state of Arkansas.
That quote is from on of McDaniel’s deputies, but it makes Payday Pundit wonder — what does AG McDaniel have to gain from “stamping out” an entire industry in his state? This is surely the most forward any public official has been about their real plans for the industry — what’s McDaniel’s interest in being outspoken and ahead of the pack on this issue? Something to think about as the statewide election season heats up…
Some payday lenders in Arkansas standing firm
July 16, 2008 | Arkansas | Comments (1)The group Arkansans Against Abusive Payday Lending are garnering quite a bit of press coverage with their report on the state of the payday loan industry in Arkansas. The AP reports:
A new report released Wednesday says a third of the payday lenders that Attorney General Dustin McDaniel ordered to close have remained open and restructured their businesses to avoid state regulation.
The report says the lenders “have developed new business models in an attempt to avoid even the minimal regulations of the Check Cashers Act and, more significantly, the recent crackdown by the Attorney General.”
Though the Payday Pundit is sure Arkansans Against Abusive Payday Lending is a fair and balanced source of information, it’s doubtful that payday lenders are reshaping their business models because they want to avoid “even the minimal regulations” of Arkansas law. They’re probably up to something slightly less sinister, like “striving to keep their businesses open,” or “continuing to put food on their tables.” Shame on those payday lending small business owners.
Arkansas’ citizens quickly losing payday loan options
July 16, 2008 | Arkansas | Comments (0)KARK 4 news in Arkansas reports that “numbers of payday lenders in Arkansas are dwindling.” A recent report released by Arkansans Against Abusive Payday Lending notes:
There were 275 payday lenders in Arkansas in March 2006, and that number has fallen to 136 as of this month.
The Payday Pundit remains mystified as to why “consumer groups” and politicians continue to celebrate the news of small businesses closing and financial options being narrowed. This report is probably not causing champagne corks to pop for many Arkansans who look to payday loans in a pinch.
