The Fall of 2008 has been a difficult time for the payday loan industry. As we have discussed, voters in several States, including Ohio and Arizona, dealt blows to payday lenders in those States.
It wasn’t just voters who gave payday lenders a hard time — the Arkansas Supreme Court also did. In November, the Arkansas Supreme Court ruled that the state Check Cashers Act “clearly and unmistakably” violates the Arkansas Constitution by allowing payday loans at interest rates above the 17% cap set by the State Constitution. Arkansas is the only State in the U.S. that sets a lending rate cap in its Constitution (other States with caps set the caps by statute).
You can read the full text of the Court’s opinion here.
