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.
Long is a graduate of the University of North Carolina at Chapel Hill with a B.A. in Industrial Relations. He subsequently received his Certificate in Nonprofit Management from Duke University. His Certificate in Financial Planning was issued by Florida State University.
Long has achieved the Accredited Credit Counselor and Accredited Financial Counselor certifications through the Association for Financial Counseling, Planning and Education. Long originally achieved the Certified Credit Counselor designation through the National Institute for Financial Education.
In addition to years of nonprofit leadership, Long has been an innovator in the field of volunteer tax return preparation programs. He assists volunteer associations and nonprofit organizations who seek to integrate credit counseling and asset-building programs with free personal income tax preparation. His approach to using free credit reports as both an incentive and a screening tool for placement into asset-building programs has been shared with members of the National Community Tax Coalition, the EITC-Carolinas Initiative of MDC, Inc. and nonprofit groups across the Carolinas.
Long assists members of our armed forces in the Carolinas, Iowa, Rhode Island, Georgia and Germany with financial readiness. Please support our Soldiers, Marines, Airmen and Sailors!
"The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."