Angel of Death
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