Today's Date: Add To Favorites
Court: Payday lending law violated constitution
Topics in Legal News | 2008/11/05 14:07
A 1999 state law allowing so-called payday lenders to charge high fees for short-term loans violates the state constitution, the Arkansas Supreme Court ruled Thursday.

In a 6-0 decision, the court said the fees permitted under the 1999 Check Cashers Act were really triple-digit interest rates. The state constitution limits interest rates on loans to 17 percent.

"Because that fee is in reality an amount owed to the lender in return for the use of borrowed money, we must conclude that the fees authorized clearly constitute interest," Justice Paul Danielson wrote.

Through a payday loan in Arkansas, a customer writing a check for $400, for example, typically would receive $350. The lender would keep the check for about two weeks before cashing it.

The customer could buy back the check for $350 during that two-week period, but otherwise would pay the full $400 when the company cashed his check. The $50 charge on a $350 loan for 14 days equates to 371 percent, well above Arkansas' usury limit.

Attorney Todd Turner, who represented the plaintiffs who challenged the Check Cashers Act, said the ruling means it will be impossible for payday lenders to operate in the state.

"It's great for all the Arkansas residents who have been paying 600 percent for these loans," Turner said.

Tom Hardin, attorney for the Arkansas Financial Services Association that sought to preserve the law, did not immediately return a call seeking comment.

Even before Thursday's ruling, the number of payday lenders in the state has dwindled in response to threats of lawsuits from Attorney General Dustin McDaniel. An advocacy group said in a report last month that the number of payday lenders operating in the state has dropped from 237 in March to just 33.

In its 6-0 decision, the court overturned a Pulaski County judge who last year ruled that the 1999 act was constitutional.



[PREV] [1] ..[2414][2415][2416][2417][2418][2419][2420][2421][2422].. [2710] [NEXT]



All
Legal Business
Headline Legal News
Court News
Court Watch
Legal Interview
Topics in Legal News
Attorney News
Press Release
Opinions
Legal Marketing
Politics
Texas’ migrant arrest law will rema..
Former Georgia insurance commissione..
Alabama woman who faked kidnapping p..
A Supreme Court ruling in a social m..
Denying same-sex marriage is unconst..
Trump wants N.Y. hush money trial to..
China’s top court, prosecutors repo..
Supreme Court restores Trump to ball..
Supreme Court casts doubt on GOP-led..
Donald Trump appeals $454 million ju..
Alabama hospital pauses IVF treatmen..
Ken Paxton petitions to stop Dallas ..
 Law Firm Web Design Information
Law Promo has worked with attorneys, lawyers and law firms all over the world in designing beautiful law firm websites that look great on all devices, from desktop computers to mobile phones. Law Promo can construct your law firm a brand new responsive law firm website, or help you redesign your existing site to secure your place in the mobile world. Solo Practice Law Firm Website Design


   Lawyer & Law Firm Links
Amherst, Ohio Divorce Lawyer
Sylkatis Law - Child Custody
loraindivorceattorney.com
St. Louis Missouri Criminal Defense Lawyer
St. Charles DUI Attorney
www.lynchlawonline.com
Car Accident Lawyers
Sunnyvale, CA Personal Injury Attorney
www.esrajunglaw.com
Family Law in East Greenwich, RI
Divorce Lawyer - Erica S. Janton
www.jantonfamilylaw.com/about
Connecticut Special Education Lawyer
www.fortelawgroup.com
San Francisco Trademark Lawyer
San Jose Trademark Lawyer
www.onulawfirm.com
 
 
Disclaimer: The content contained on the web site has been prepared by Romeo Media as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance. Blog postings and hosted comments are available for general educational purposes only and should not be used to assess a specific legal situation. Legal Business News for You to Reach America's Legal Professionals. Get the latest legal news and information.