State Board Rules Against Payday Lending Opponents

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00013838-state-board-rules-against-payday-lending-/

By Wesley Brown, Arkansas News Bureau

The State Board of Collection Agencies on Wednesday denied a claim by opponents of the state’s check-cashing law who sought enforcement of a surety bond posted by a payday lender that violated the state usury law.

The board’s 3-1 ruling is another setback for payday lending foes, who argue that the check-cashing law illegally allows pay-day lenders to charge annual interest rates that exceed state constitution’s usury cap of 17 percent on consumer loans.

For this complete story, please visit http://www.arkansasnews.com/archive/2005/12/08/News/331701.html.