Arkansas Lenders Holding Strong

101 payday lenders in Arkansas are gone since the beginning of ’08. Of the 237 operators 136 are still offering loans. 55 (I counted 54) of the lenders are operating “in defiance” of the attorney general using various methods. The other 81 lenders are operating outside of state regulation and will face “potential” scrutiny, whatever that means:

Here’s a breakdown of what payday lenders are doing:

  • 40 lenders are selling money orders and charging a 10% fee under a different law.
  • 8 are CSOs (Credit Service Organizations).
  • 6 are operating under a South Dakota lending license.
  • 81 are allegedly noncompliant of which 55 lenders send borrowers over the border into Texas to complete the transaction.

The remaining 26 lenders are a mystery to me.

It’s very interesting to see which model will win out, if any; AND which model gets attacked next.

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