LITTLE ROCK, Ark. — Arkansas Attorney General Dustin McDanielhas sent letters to 60 companies which run payday lendingoperations in the state asking that they shut down operationsimmediately or face likely lawsuits from his office, according tomedia reports.
|The Arkansas constitution bars lenders from charging more than17% interest and the payday lending industry successfully supportedlegislation that passed in 1999 which specified that paydaylenders' fees “shall not be deemed interest,” according to thestate. But the state's Supreme Court issued opinions last monthwhich made it clear that the law did not provide blanket protectionagainst the Constitution's interest limit, media reports said.
|In his comments a press conference announcing the letters,McDaniel reportedly warned payday lenders that the license from thestate will not protect them now that the Supreme Court hasruled.
|“If you violate the laws and constitution of this state,”McDaniel is quoted as saying, “it doesn't matter if you have alicense hanging on your wall.”
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