By
Kenneth Long on January 25, 2012
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Arkansas Attorney General Dustin McDaniel filed suit against online payday lenders controlled by Josh Mitchem. His companies, PDL Support LLC and Platinum B Services LLC routinely charge interest rates that exceed 600% APR. One contract reflected an APR of 644.12%.
The companies lend money through the following online payday lending brands:
- Action Payday
- Bottom Dollar Payday
- Everest Cash Advance
- Paradise Cash Advance
- Red Leaf Lending
- The VIP Loan Shop
According to McDaniel's investigation, all lending operations were based in Kansas City, MO even though the websites claimed that operations originated in the Caribbean island of Nevus. Although some states like North Carolina have balked at pursuing online lenders that violate the state usury limit, Arkansas has sent a strong message to usurious payday loan providers. Dustin McDaniel released the following statement:
These usurious practices are just as illegal when offered on the Internet as when they were offered from storefronts in Arkansas. We shut down lenders operating in Arkansas and will continue to take action against online payday lenders.
Interest rates above 35% are generally considered to be usurious in nature, meaning that those companies that supply such loans are predatory in nature. The interest rates charged in these cases are up to 18 times higher than that!
Arkansas residents who have loans outstanding to one of these lenders may be granted a release from the debt by contacting the office of the attorney general. Call 501-682-2341 or toll-free 800-482-8982.