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Headlines Payday loans

_Kitana_

Angel of Death
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#1
South Dakota Payday Loan Companies Investigated in Arkansas

Two South Dakota check cashing companies may be in hot water for the way they run their business.

The Arkansas Attorney General is looking into 18 check cashing companies including Mount Rushmore Loan Company and Dakota Loan Company, both based in Sioux Falls.

The companies says they haven't done anything wrong. But the State of Arkansas says their business practices may break that state's usury laws.

Drive down almost any street in town, and it's hard to miss them. Payday loans, payday advances, all the money you needs to get you to that next pay check.

But at a much higher rate.

"[Their] annual percentage rates [are] 350 or 500 percent.," Lorri Halverson Director of Consumer Credit Counseling Service said.

She says most of the clients that come to C-C-C-S for help owe between 5 and 7 payday lenders.

"While a lot of people are concerned about a credit card rate where they're paying 21 or 25 percent, these are just exorbitantly higher," she said.

South Dakota doesn't restrict what interest rates companies can charge, but Arkansas does, and the state's Attorney General, Mike Beebe, is investigating to see if 18 companies are charging higher interest rates than the law allows.

Employees here at the companies Sioux Falls offices didn't have any comment, but by phone a spokesman says the companies are just using a business model that's new to Arkansas.
Read the rest here http://www.ksfy.com/

Can't believe people even try a payday loan
 

swizeguy

How dare you!?
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#3
some people are very stupid and dont read the fine print.. money now sounds good to a lot of people...
 

_Kitana_

Angel of Death
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#4
i just thought it was intresting that another state is sueing.

im not really seeing how?
 

MaxPower

You're my number two
Staff
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#5
Payday loan houses are vultures preying on people that are desperate, and too honest to steal.
 

BRiT

CRaZY
Founder
11,831
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#6
_Kitana_ said:
i just thought it was intresting that another state is sueing.

im not really seeing how?
It's quite simple. PayDay Loan branches are EVERYWHERE. They're headquarted in South Dakota. You can bring a suit against a company in any jurisdiction they have a physical presence or conduct business in. This would be no different than one bringing a lawsuit against Walmart. Or even how several states brought a suit against Microsoft.

In this case, it's not too surprising. All states have lending laws that must be followed. In addition to that, the federal goverment also has their own laws. These laws exist to protect those in need and usually prohibit predatory lending practices.
 

_Kitana_

Angel of Death
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46
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#7
BRiT said:
It's quite simple. PayDay Loan branches are EVERYWHERE. They're headquarted in South Dakota. You can bring a suit against a company in any jurisdiction they have a physical presence or conduct business in. This would be no different than one bringing a lawsuit against Walmart. Or even how several states brought a suit against Microsoft.

In this case, it's not too surprising. All states have lending laws that must be followed. In addition to that, the federal goverment also has their own laws. These laws exist to protect those in need and usually prohibit predatory lending practices.
guess in south dakota we don't have that lol