Advance America of Jacksonville, one of several cash-advance centers in the state forced to reduce interest rates they charged customers, announced Tuesday it will shut its doors in Arkansas Oct. 31.
New state laws no longer allow Advance America to earn the profits that it once did, according to the company, which reported $165.5 million profits for the first quarter of this year, slightly down from 2007.
“This is a major victory for the consumers of Arkansas and a huge victory in our battle against predatory lending in Arkansas,” said Attorney General Dustin McDaniel in the press release.
“The largest provider of pay day loans in the state has closed its doors, without litigation, in response to our efforts. I hope the decision of Advance America will persuade all lenders that operate in violation of Arkansas law to shut down,” McDaniel continued.
“Now, we continue our efforts against those that still engage in illegal lending practices in Arkansas,” McDaniel said.
