Arkansas two online payday loan companies, reports payday loans max
According to Payday Loans Max, Arkansas’s attorney General sues two online payday loan businesses and their owners.
They claim that these online lenders lending out illegal payday loans with interest rates higher than allowed by Arkansan’s law. These law suits are against Arrowhead Investments Inc., and Galaxy Marketing Inc. Christopher Hodes is holder of both companies so he will also be subject to the law suit.
The law suit was filed in Pulaski County Circuit Court again this individual and his two holding companies accusing him of marketing Arkansas payday loan consumers through various websites lending payday loans with high interest rates some as high as 782 percent!
The lawsuit seeks to prevent the defendants from providing such high-interest loans starting immediately. Also, the defendant will not be able to collect any debt on all loans that were made illegally including the principle.
According to a Payday Loan States article in an industry resource, below are the restrictions on payday lenders in that State:
Legal (For Check Cashers Only)
Max Loan Amount: $500
Max Charge/APR% for a 14 Day Loan ($100): $20/520%
Term: Minimum 14 days
Rollovers Allowed: Two
*Editors Note* – Arkansas has placed tight restrictions on the average payday lender, making it very tough to run a Payday Loan Business in Arkansas. Many people have turned to internet lenders to find access to short-term credit.
Consumer Alert regarding fraudulent collection activity involving payday loan customers!!
Earlier this month we released an important notice on unlawful payday loan collection agents calling to customers in an attempt to solicit payment. There demeanor is very threatening and highly aggressive and unprofessional. In some cases, this group of individuals are threatening consumers with incarceration.
Cash USA just released a similar notice via press release and mass emailing to their customers to apprise them of this unfortunate matter.
As a reminder, Direct lender that not only utilizes diplomacy during the course of communication with there customers, but continue to enhance the awareness of such matters to complete customer base. Lender In-House Legal Division has been trained to provided information to victims to ensure that there identity is safeguarded.