Another payday loan lender will be paying settlement fees to one the U.S. states. Arkansas will collect $80,000 from the defendants and will distribute the money based on the Arkansas Attorney General’s policy on settlement funds. So what happened?
A Kansas City resident and businessman owns several LLC companies which control the operations of multiple online payday loan lender websites. These businesses allegedly operate out of a Caribbean island. These companies were accused of charging excessive fees and interest rates. Loans which were offered to the Arkansas residents had annual percentage rates as high as 644%. These high numbers go against the regulations set up by state government in controlling the payday loan lenders for the protection of its citizens. Violation of the state’s laws will get the lenders into court.
The judgment also calls for the defendants to stop offering the high interest loans to those who live in Arkansas as well as cancel any outstanding loans made with them. The websites will also have to place words which let visitors know that they may not loan to Arkansas residents. The defendants still deny any wrongdoing but will comply with the orders. Arkansas law prohibits excessive fees and interests from any storefront payday loan lender or any online direct payday loan lender located in the U.S., some island or foreign company.
Usury is defined as the process by which loans are made using excessive fees and high interest. Some definitions would call the interest charged as abusive. Usury loans will put customers further into debt as interest piles up onto their balances. There are many cultures which regard these types of loans as sinful but as with any loan which charges interest. Each person has the right to their opinion, but in the financial world, a customer will not be getting a free loan. Business is business, but it is also the requirement of a good business to follow any laws which may regulate their services.
Find the responsible payday loan lenders out there.
In the financial world, there are weekly news reports which highlight someone somewhere doing something illegal or ethically wrong. Direct payday loan lenders do not run the gamut on the “bad apple” in the financial world. No matter how many negative reports which are made, the industry is not full of the predatory lenders. There are good lenders out there, but the customer needs to shop around to find them. Those in a rush to grab the first offer for fast cash may find themselves in a spot when dealing with a lender with less than best practices. Lenders who follow best practices will follow all state guidelines no matter where the online lending company runs it business from. The fees and interest should be within the competitive range. A potential customer should shop around to find out what is offered and make a decision based on finding quality companies.
Spotya! Online Payday Loans is a direct lender promoting responsible practices by both lender and borrower. Lending money for profit does not have to be a negative experience when there is a responsible direct payday loan lender involved.
