Legislators Meet to Discuss Payday Advance Lending
By J.J. CameronPayday Loan Writer
Having drawn criticism from consumer advocate groups, the industry of payday loans has been under attack in Arkansas. A panel of legislators met this morning to discuss the topic.
Critics such as Arkansans Against Abusive Payday Lending claim that these short-term loans come equipped with unreasonable interest rates. We’ll keep you apprised as this story develops and the state’s payday advance fate is decided.
The practice of payday lending has drawn scrutiny lately from critics like Arkansans Against Abusive Payday Lending, who say the short-term, high interest loans trap poor people in a cycle of debt.
March 17th, 2006 at 9:43 am
[…] During a crowded hearing in front of the House and Senate judiciary committees yesterday to discuss the state of payday lending in the state, law makers decided NOT to draft legislation that would change a seven-year-old law regulating payday advances. […]
March 18th, 2006 at 4:25 pm
[…] Fellowes’ study of payday lenders nationwide matches The News Journal’s analysis of state and federal banking data, which showed that such financial institutions have become common in all kinds of Delaware neighborhoods. […]
April 10th, 2006 at 2:22 pm
[…] The AARP and other payday loan lending opponents say current law allows payday advance companies to circumvent the state constitution’s 17 percent interest limit and charge more than 400 percent interest on loans, costing the average payday loan borrower $800 for a $350 loan. […]
April 12th, 2006 at 2:09 pm
[…] In 1999, the Arkansas legislature passed a bill allowing the check cashers to operate as long as the fees are not called “interest.” Turner said it doesn’t matter what the companies call the amount charged, “it’s still interest.” […]
April 23rd, 2006 at 3:36 pm
[…] "If it is going to apply to (payday loan lenders), then we should apply it across the board," Childers said, calling both practices usurious under the state constitution. Nobody has disputed that payday advance lenders are profiting from the check cashiers law that several lawmakers have said they would look to repeal in 2007. One study by payday lending opponents shows that the practice taxes low-income Arkansans more than $68 million annually. […]