The Arkansas attorney general's office filed a consumer-protection lawsuit Monday against two Kansas brothers and three Missouri companies they own or operate. The suit contends that the defendants illegally reaped more than $264,000 from Arkansas customers by charging as much as 782 percent interest for payday loans, which are banned in Arkansas.
The deceptive-trade practices suit asks Pulaski County Circuit Judge Tim Fox to stop the practice, cancel any outstanding loan contracts, force the defendants to repay their Arkansas customers and fine them $10,000 for every loan they've made in the state.
"My office is committed to rooting out illegal payday lending in Arkansas, whether a company is operating in the state or claims to be based in some foreign country," Attorney General Dustin McDaniel said when he announced the litigation. "Consumers gain absolutely no benefit from short-term loans with exorbitant interest rates. These types of loans typically only push consumers further into debt."
The defendants are Chris Kamberis of Leawood, Kan., and John Kamberis of Olathe, Kan., and the companies are King Marketing, Prestige Group Marketing and SLR Ridge, all limited liability corporations in Kansas City, Mo. A phone message to the companies' 800 number Monday was not returned.
According to the lawsuit, filed on McDaniel's behalf by Assistant Attorney General Charles Saunders, the brothers' Kansas City companies provide call-center services to three companies in the Caribbean island nation of Nevis that the men own: Fox Enterprises Ltd., Vince Enterprises Ltd. and Rockford Inc.
The Caribbean companies don't actually provide the loans; that's done by the brothers, the suit states. They have collected $264,585 in illegal fees and interest from hundreds of Arkansas consumers, according to the lawsuit.
State lawyers have documented the defendants charging customers as much as 640 percent interest to 782 percent interest on loans of $200 to $300, the suit states.
Metro on 06/11/2014