According to Payday Loans Big, 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 Arrolond Invest Inc., and Galo Market Inc. Mark Zulmon 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.