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Internet Payday Loans in Arkansas

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I was just wondering if internet payday loans were legal in Arkansas. I looked at Arkansas law on payday loans and it said legal (applies to check cashers only). Is this saying that all internet payday loans are illegal?


Arkansas State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Ark. Code. Ann. § 23-52-101 et seq.; Ark. Const. art. 19, § 13

Loan Terms:
Maximum Loan Amount: $400
Loan Term: 6-31 days
Maximum Finance Rate and Fees: 10% of check + $10; $5 ID card
Finance Charge for 14-day $100 loan: $22.22
APR for 14-day $100 loan: 579%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per location
Rollovers Permitted: None (cannot renew or consolidate)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: NSF fee; Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited (Unless check returned due to closed account and stop-payment by maker)

Where to Complain, Get Information:
Regulator: Arkansas State Board of Collection Agencies
Address: Division of Check-Cashing Companies, 523 Louisiana Street, Suite 460 Little Rock AR 72201
Phone: (501) 371-1434
Fax: (501) 371-1440
Regulatory Contact: Peggy Matson,, Executive Director




Arkansas is weird. The AG sent a letter to all the storefronts and made them shut down. I would imagine that means out-of-state internet lenders are illegal too, but I can't find any record of Arkansas regulators going after them.

Sub: #1 posted on Tue, 05/12/2009 - 19:59

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Arkansas use to allow an internet based payday loan company to lend legally as long as it is licensed in any US State. They would need to follow the laws of the state they are licensed out of, not the state the consumer is in. But I'm not certain if this is still true, your best bet would be to contact your DFI.

Sub: #2 posted on Tue, 05/12/2009 - 21:57

Shazzers Shazzers
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(Posts: 17342 | Credits: 1592.8)

I emailed the Arkansas' Attonrey General about internet payday lending in Arkansas. I will update as soon as I get a response.

Sub: #3 posted on Wed, 05/13/2009 - 14:38

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