Arkansas Attorney General Dustin McDaniel filed a consumer-protection lawsuit on July 17th against Kansas debt collectors for illegal collection activity on payday loans. The lawsuit states that the company violated the Arkansas Deceptive Trade Practices Act, according to KUAR.
The Arkansas law protects consumers from debt collectors who pursue payments for payday and high-interest installment loans that are excessive, void, or predatory. Attorney General McDaniel stated that payday loans violate Arkansas law and that his office is dedicated to protecting consumers throughout the state from being victimized by debt collectors. The Attorney General’s Office is seeking an injunction to stop the illegal debt collection plus civil penalties and the return of all money collected from payday loans or other unfair loan programs.
Payday loans are small and short-term loans meant to be used as cash advances that are collected on a consumer’s next paycheck. While the loans are meant to give short-term help to consumers, they can be harmful. The loans can exploit financial hardship and debt collectors may improperly threaten legal action for nonpayment and attempt to collect more than they are entitled to. Although this type of loan is legal in California, they have been outlawed in 13 states.
If you are a victim of unfair collection practices, Riverside creditor harassment attorney Howard D. Silver can put an end to your troubles. For more information on how we can help, call the Law Offices of Howard D. Silver at (866) 495-3600.