Troubled Payday Loan Lender Still in Business

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

What's wrong with this payday loan picture? 

Dennis Bailey - the Arkansas payday advance lender who was fined $1.3 million recently - is still doing business in the state. Despite being ordered to shut down 14 stores, Bailey has yet to do so because the state needs a court order to enact such a punishment on the pay day loan business.

The Arkansas Board of Collection Agencies says Bailey is operating businesses without a license that have been cashing checks for fees and making faxless payday loans in violation of state law. The board ordered the 14 stores closed immediately … but officials just learned the firms are still operating. A court order is required because the stores perform services other than just payday loan lending.

A lawyer for Bailey says the board decision is being appealed.