Arkansas sues online payday lender

Payday loans
Payday loans

Even after it was determined payday lending was unconstitutional in Arkansas, two companies allegedly couldn't resist marketing the high-interest loans online to Arkansas consumers.

Arkansas' attorney general sued both companies -- Arrowhead Investments, Inc. and Galaxy Marketing, Inc. -- and their owner, Christopher Hodes. The suit alleges the companies issued loans with interest rates of 782% through various websites.

In its lawsuit, the state seeks to bar the companies and their owner from offering or collecting upon high-interest loans. It also wants the companies to return all payments to the borrowers.