Kansas vs. Payday Loan Collector Agency
Kansas vs. Payday Loan Collector Agency
The Attorney General of the State of Kansas has recently announced that he has filed a lawsuit for consumer-protection against a debt collection agency that is based in the state. The said agency was based to collect the debts of consumers for their payday loans.
The complaint was passed to the Pulaski County Circuit Court. According to the file, National Credit Adjusters LCC or NCA of the Hutchinson, Kan., is against the Arkansas Deceptive Trade Practices Act because its collection of consumer debts for payday and high-installment loans is usurious, unacceptable and not legal under the law of the State of Kansas.
According to Atty. McDaniel’s complaint the NCA is distorted to the consumers of Arkansas clients. The law does not state that collecting the payday loans and installment debts should be strictly enforced. In fact, in the state of Kansas, having a group of people to collect payday loans from clients is illegal.
McDaniel is driven to protect the citizens of the state from abuse and illegal activities from payday lenders and other agencies that are connected with them. He further stated that even if they had been successful in closing some of the payday lending firms, they will be very aggressive and vigilant in going after the individuals who practice activities contrary to their law, and those that try to collect on illegal debt is one of them.
The NCA has recently purchased rights to collect on delinquencies. This has led to the purchase of large amounts of debt from payday loans and high-interest installment loans. These loans increase the rates that the law in Arkansas allows.
The lawsuit is requesting the Court to make an action in preventing the NCA to practice illegal activities in Arkansas. It also wants the Court to cancel their currently unpaid loan contracts and order the agency to return the money it has collected to the people.
The attorney also wants the Court to impose penalties for their civil crime by imposing penalties and costs.
The lawsuit asks the Court to issue an injunction prohibiting NCA from actions that violate Arkansas law, cancel outstanding usurious loan contracts, and order NCA to return to Arkansas consumers any money collected based on payday or high-interest installment loans.
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