Payday Lender Levied $1.3 million fine, Largest since Law Enacted

Arkansas continues its crusade against payday lenders, this time levying an astonishing $1.3 million fine against Dennis D. Bailey, a Fordyce, AR-based lender, and ordering the shut-down of 14 stores in the state.

“We may never collect a dime from him,” Peggy Matson, executive director of the Arkansas State Board of Collection Agencies, told the Arkansas News Bureau. “But we need to shut down his operation.”

The administrative order, which took effect immediately, covers payday lending stores in Beebe, Bryant, Cabot, Camden, Corning, Fordyce, Harrison, Hot Springs, Little Rock, Mountain Home, New port, Searcy, Sheridan and Walnut Ridge. Most of Bailey’s stores operate under the “Fast Cash” moniker.

Believe it or not, the fine may not necessarily be rock bottom for Bailey. He?s also required to:

• Make any transactions entered into at the Fast Cash stores “null and void,” meaning persons who cashed checks or got loans at those locations won’t have to meet the terms of those contracts.

• Refund any fees collected by the check cashing services. Bailey is also required to pay attorney fees to ASBCA’s Division of Check Cashing in the amount of $10,000.

• Pay an outstanding fine of $20,200 for the illegal operation of a Pine Bluff store.

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