Payday Lenders Getting Stiff-Armed - Motley Fool- Cash Before Payday
Arkansas’ attorney general wants to shut down payday lenders in his state, and he’s sent letters to some 60 companies doing business there, telling them to pack up, ship out, and — oh yeah! Hood has been accused of colluding with trial lawyer Dickie Scruggs — who just pled guilty to bribery charges in an unrelated case — of trying to force State Farm Insurance to settle lawsuits over Hurricane Katrina by threatening to launch a criminal investigation. McDaniel’s maneuver, however, seems unusual, because it’s driving out of business — and branding as illegal — an industry that was specifically allowed to operate in the state of Arkansas by the state’s Check Cashers Act. While companies can’t charge more than 17% in the state, the state’s supreme court previously ruled that the fees charged by payday lenders weren’t necessarily a violation. Learn more
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