Check Advance or Payday Loan Laws in Arkansas

[RWright]

My Nephew went to one of those companies that loan money to you with repayment on payday. The way it works is you write them a check and they deposit it on the date you posted it for. If you cant pay you can renew it for what appears to be around 20% of the check amount. So for an advance of $490 renewal is $90. Which doesn't reduce the amount at all. Here's the situation his son was sick and in the hospital in the next town. He couldn't work steady. He used one of these places 5 times totaling around $2000 his monthly "renewal" fee's are around $400 a month. He's paid them around $3000 so far in renweal fees.

Come to find out. They're proposing to provide an Internet reasearch program. From the copy of his aggreement they just faxed us. My nephew says he's never seen this aggreement before. I know this isn't much info to go on. The whole thing seems loan sharkish to me.

Please let me know what kind of information you may need to form an opinion of this.

Thank you
RWright

[moburkes]

My opinion is that those places "prey" on people when they need it the most. But at the same time, they do help people. They help someone who only needs to use it once or twice. But when a person constantly gets loan after loan after loan...they will never be able to pay the company back.

However, that's just my opinion.