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KANSAS CITY, Mo. – A Kansas City man and his businesses are in the middle of a lawsuit filed Monday by another state’s attorney general. Arkansas AG Dustin Mc Daniel says Josh Mitchem charges interest rates through payday loan websites.
Court documents show the address of 3543 Broadway where the website was operated. Company agents told FOX 4 they were no longer there. Wherever they are, the Arkansas AG office hopes to keep them out of state for good.
The 23-page consumer protection lawsuit details Arkansas AG’s allegations against Mitchem and two companies PDL Support LLC and Platinum B Services. The documents indicate that six online payday lenders, companies and Mitchem’s support offered illegal loans with interest rates sometimes reaching
“They are entering a cycle of debt. We want to avoid this. We do not think this is good business practice.
The Arkansas AG office says the total number of complaints climbed to around 700 in 2011 from 400 in 2010. These numbers come as no surprise to Opportunity Communities or CCOs who say Missouri itself has a major problem. with predatory loans.
“Missouri for all intents and purposes is the last among the states in the way it limits payday lending, so it’s no surprise that this type of activity originated in the state of Missouri,”
Volunteers at the nonprofit say they are trying to pass a ballot that would cap the interest rate on small dollar loans at 36% in Missouri. This would also include online lenders.
Mitchem is abroad on a business trip. He said in a statement to other media: “All websites are controlled by the lenders themselves and the company has no control over developing or granting loans.
The Arkansas AG office says the websites are said to be based in the Caribbean island of Nevis, but the lending operations are based in Kansas City. He hopes to ban this type of loan in their state with this lawsuit.
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