It seems that the Arkansas Attorney General, Dustin McDaniel is looking at Selling Source, Partner Weekly and Money Mutual, all based out of the same address in Las Vegas, for aggressive advertising practices. According to the the Attorney General, they’ve been using Montel Williams to push pay-day loans in the State of Arkansas, among other places.
McDaniel isn’t too happy about that for some reason, and wants to know more about their practices and has issues a Civil Investigate Demand to them on August 9th, asking them to answer some questions. According to McDaniel, they haven’t responded to his demands, and he’s filed a complaint with the courts asking that they be prohibited from doing business in Arkansas unless they respond.
“We believe that these companies are luring Arkansans into applying for loans that only push consumers further and further into debt,” claims McDaniel “The companies appear to be advertising for loans that are unconstitutional in Arkansas. We will continue to take actions to ensure that organizations related to payday lending do not harm our State’s consumers.”
The main part of the argument is that the Arkanas constitution does not allow for loans that are in excess of 17 percent, while these loans are in theory as much as 300 percent.
