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: CL&P BlogArkansas Supreme Court Strikes Down Payday Loan Law
By Greg Beck
The Arkansas Supreme Court last week struck down the state's Check-Cashers Act, which authorizes and regulates payday lending in the state, as a violation of the state's constitutional ban on usury. The state's constitution prohibits any loan with an interest rate above 17%. Various payday loan contracts authorized by the statute, however, had rates between 168% and 559%, which the Court held to be "clearly and unmistakably usurious" in violation of the state constitution.
Full post as published by CL&P Blog on November 12, 2008 (boomark / email).
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