Today’s blog post will cover how to get out of payday loan debt in Arkansas.
We are at the beginning of a series of fifty blog posts that will concentrate on how to get out of payday loan debt state by state.
Even though we offer debt relief in any state in the union this series will cover not only payday loan debt in each state in the union but what the current laws are and how to deal with these companies in different state jurisdictions.
Arkansas And Payday Loans
Storefront payday loans are illegal in Arkansas and in most cases, any outstanding debt owed from payday loans after the law was enacted is uncollectable and unreportable to any collection agency.
Then why this blog post you ask?
Online payday loans are alive and well in Arkansas and these loans are more dangerous than their storefront counterparts!
The major difference between the online loans and the outlawed storefront loans is the way they collect payment.
The old storefront loans would let you post date a check to your next payday for the amount of the money borrowed plus the counter fee and the interest due and at that payday date they would cash the check and the loan would be satisfied.
When using the online payday loans you get the loan amount only directly deposited into your checking account usually within 24 hours and you also authorize the loan company to access your checking account for payments due.
The interest and fee for the loan are then added to your total owed.
For example, you borrow $500.00 for two weeks (your next payday date)
The interest rate for that $500.00 loan is $150.00 with a processing fee of $15.00 making the total amount owed on your next payday $665.00 right?
Instead of the total amount due on the loan being taken out of your checking account on your next payday only the interest UNLESS you call them and tell them a different payment amount. (They have a very bad habit of rushing over this part during the loan process)
The interest for the loan is then added to your total owed bring your balance due (again, on your next payday) you guessed it, $665.00
And they will do this over and over and over!!!
The best advice we can give to anyone with outstanding storefront payday loan debt is to get hold of The Consumer Protection Agency at Consumer Protection Division or call (800) 482-8982 and they can help you get this dismissed.
As far as using the online payday loans, we recommend to avoid them at all costs and if you are already in trouble with this kind of debt to give us a call toll-free at 1-877-210-5100 and we will be more than happy to help you eliminate this debt!
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