Two-thirds of payday lenders in Arkansas have closed shop

Since Attorney General Dustin McDaniel ordered 156 payday lending stores to cease operations here in Arkansas, 101 of them have closed, according to an article in today's Democrat Gazette. Justin Allen, chief deputy in the attorney general’s office, says those who haven't closed their doors have changed their method of operation so as to fall within the law. The attorney general has sued four payday lenders. McDaniel's directive was motivated by two Arkansas Supreme Court rulings in January and February of this year. It also came on the heels of legislation that passed the House 90-3 (but which failed in the Senate) that would've defined fees charged by check cashers to be interest, thereby violating the Arkansas constitution as it relates to usurious loans over and above 17% interest.