Cash Advance Lender Agrees to Stop Arkansas Business
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UPDATED: Feb 9, 2021
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Cash advance lenders better steer clear of Arkansas—or at least tread carefully.
Attorney General Dustin McDaniel just reached an agreement with Sure Advance, an online cash advance company. Under the terms of this agreement, Sure Advance will no longer be able to offer cash advances to Arkansas residents. Sure Advance has also agreed to cancel all outstanding debt for its Arkansas based customers.
According to a news release from Attorney General Dustin McDaniel, he sued Sure Advance in 2011 when they violated the Arkansas Deceptive Trade Practices Act. Sure Advance allegedly lent cash advances with interest rates in excess of 600 percent, while state law limits interest rates at 17 percent.
“We were successful in shutting down storefront payday lenders in Arkansas, and our fight continues to protect Arkansas consumers on the Internet. We will take action against those companies that offer these illegal loans online and would seek to cause consumers to fall into a spiral of debt,” said McDaniel in the news release.
Sure Advance will be required to pay the state of Arkansas $50,000 under the terms of the agreement.
Additionally, McDaniel secured an Assurance of Voluntary Compliance (AVC) with two additional companies, Government Employees Credit Center Inc., and Bexar Partners Inc., both of which own Sure Advance.
Under the terms of the AVC, both of these parent companies are also prohibited from lending out cash advances within the state of Arkansas.