Payday loans wiped out in Arkansas -- is this a trend?

Three years ago more than 250 payday lenders were doing business in Arkansas. As of this week, all are out of business.

Arkansas represented a unique opportunity for opponents of payday lending. The state constitution includes a cap on interest rates that state officials and advocates used to drive the industry out of Arkansas.

Nine months ago, the Arkansas Supreme Court overturned a state law as unconstitutional for permitted bloated interest rates to be charged setting the stage for the demise of the industry there.

Payday loans allow borrowers to get short-term cash advances on their paychecks typically at extremely high interest rates plus fees.