Arkansas’ Attorney General is cracking down on payday loan companies in pursuit of protecting the residents from unlawful debt practices and collections. A consumer protection lawsuit has been opened against a Kansas-based debt collection agency for unlawful collections practices against Arkansas residents.
This lawsuit is pursuing a Kansas company for their debt collection practices for debts from online payday loans gone bad. Arkansas has some strict regulations when it comes to the relationship between payday loan operations and collections practices.
The state of Arkansas has managed to shut down storefront payday lenders and continues to pursue online lenders aggressively. There have been state regulations which are already in place that cap online payday loan lenders to loan a maximum of $400 to their residents. The loan term can range from six days to a month, or 32 days with capped interest and fees.
Online payday loan regulations for Arkansas residents
Residents of Arkansas are limited to one online payday loan per company or location. These loans cannot be renewed or consolidated at all for any reason. These regulations will keep individuals out of the cycle of debt. Many individuals who take out payday loans end up trapping themselves come payoff day. They either needs a new loan in order to pay the old one off or will require a new loan in order to pay bills before the next paycheck arrives. Regulations state that the only additional fees which can be collected on the loan are insufficient fund fees, reasonable attorney fees, and court costs. The only way criminal action can be pursued is if a customer closes their bank account or stops payment on a check in an attempt to keep from having to pay towards the loan.
It is a good effort by the state of Arkansas to regulate both the online payday lender industry as well as the residents. Both sides are guilty of taking advantage of one another, making it harder for those who are trying to loan and borrow in a responsible manner.
An online payday loan is a short-term loan for smaller amounts of money with a payoff based on your next paycheck. there are lenders out there who prey on individuals and state governments have helped to put a stop to that. There are however, companies who do not have to follow state regulations. These companies are either Native American based or those located out of the county. They tend to not fully disclose their terms and policies and end up trapping those borrowers who are desperate for quick cash.
Companies who do not follow best practices are out there. Spotya.com works hard to promote both responsible lending and borrowing while practicing best practices with filling loan requests and collecting payment. There are daily success stories here at Spotya! Online Payday Loan Lender. Good people have bad times with money. Having options which work to help correct the situation before it snowballs into a financial crisis is why customers keep return when trouble pops up. We follow strict approval qualifications in order to keep up with the state regulations and promote responsible borrowing.
