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AG unveils consumer protection Web site; says payday lending suit possible Thursday, Apr 17, 2008 By Jason Wiest Arkansas News Bureau LITTLE ROCK - A new Web site will provide consumers with information to protect themselves against all types of dangers, including identity theft, methamphetamine, and payday lending, Arkansas Attorney General Dustin McDaniel announced Wednesday. The site is part of a $500,000 multi-year initiative tabbed "Be Street Smart" that McDaniel hopes will reach more Arkansans than presentations and public service announcements alone. "We all know that you cannot get all the information you need into a 30-second spot," McDaniel said at a news conference, adding that although his office gave 773 presentations to about 69,000 people statewide last year, he wants to reach even more consumers. The new initiative includes newspaper ads and television spots, and targets all demographics. It is being funded through the Consumer Education and Enforcement Fund, which gets its money through lawsuits the attorney general's office settles. Also Wednesday, McDaniel said he has encountered some resistance to the payday lending crackdown he initiated last month. He sent letters to 156 payday lending operations demanding that they stop issuing loans, void past-due obligations and refrain from collection activities. "There are some who I believe are still up and running, there are some who are engaged in very aggressive collection efforts and there are some that probably should anticipate litigation," McDaniel said Wednesday. He said investigations will begin "soon, if not immediately," to gauge compliance with the letter, and said a decision on whether to pursue litigation against some payday lenders will be "expedited." "We're not going to drag our heels," the attorney general said. "There are thousands upon thousands of loans outstanding in Arkansas. It's the kind of thing that will dominate the time of lawyers once they begin the litigation." McDaniel moved against payday lenders after the state Supreme Court ruled the practice of charging what opponents say is triple-digit interest on short-term loans violated the constitutionally set usury limit of 17 percent. The high court said the 1999 Check Cashers Act, which declares payday lending charges are fees and not interest, does not give operators blanket protection against allegations of constitutional violations. Opponents of the practice contend payday lenders prey upon the poor and other consumers who are unable to get loans from conventional lenders. Payday lenders contend their service meets a consumer demand and that its demise would hurt some consumers. |
