Loans_Payday_loan » McDaniel Says Most Payday Lenders To Comply - Springdale Morning News- Payday Loan With Nsf Overdraft Fees

Apr

21

McDaniel Says Most Payday Lenders To Comply - Springdale Morning News- Payday Loan With Nsf Overdraft Fees

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LITTLE ROCK - Almost all of the payday lending operations ordered by the state to cease illegal lending practices have said they will comply, Attorney General Dustin McDaniel announced Tuesday. Of the 59 companies that account for almost all of the 156 operations McDaniel targeted in a March 18 letter, 52 lenders representing 147 stores formally responded and said they would no longer issue loans exceeding the state’s usury limit of 17 percent, McDaniel said. Advance America, which bills itself as the nation’s largest payday lender, will “service existing customers that were in good standing with interest-free loans” until new products up to par with the attorney general’s edict are developed and implemented, spokesman Jamie Fulmer said Tuesday. McDaniel warned his office would be watching businesses closely in the coming weeks to see if and how they are operating, and that stores that continue to make high-interest loans or collect on past loans would make themselves targets for lawsuits. Eliminating payday loans will not eliminate the need for short-term credit, according to Cheney Pruett, a spokesman for the Arkansas Financial Services Association, a payday loan industry trade group. McDaniel also said he was cognizant of the industry’s concern about fees other businesses charge would exceed the state’s usury limit if they were put in terms of interest, including the overdraft protection that banks charge and late payment fees assessed by credit cards. read more

[Tags]mcdaniel, loans, payday, advance, america, comment, payday loan with nsf overdraft fees[/Tags]

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