The Arkansas Supreme Court affirmed a circuit judge’s 2007 ruling ordering Dennis Bailey to pay the fines to the Arkansas State Board of Collection Agencies, which found he operated 14 payday lending outlets without a license. Bailey argued that the court should have remanded the case to the state board because the panel’s decision to fine him was not based on sworn testimony. In 2005, the board ordered Bailey to shut down his check-cashing operations because he did not have a license, but investigators learned over the next few months that he was still issuing payday loans. The others were Fast Cash Check Cashers in Camden, Cash Advance in Hot Springs, Cash Advance in Cabot and Central Arkansas Check Cashing in Newport. The $50 charge on the $350 loan for 14 days equates to 371 percent interest, well above Arkansas’ usury limit of 17 percent. Attorney General Dustin McDaniel has ordered payday lending outlets in Arkansas to shut down and stop collecting debts, or face lawsuits accusing them of charging high interest rates that violate the state constitution. read more

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