TEXARKANA, Ark. (AP) - The Arkansas Attorney General's office is suing a Texarkana pawn shop for allegedly charging interest rates as high as 240% on car title loans.
The lawsuit filed in Pulaski County Circuit Court names Tri-State Pawn of Texarkana Inc. and the company owner and president - William Duffer.
Duffer declined comment when contacted by the Texarkana Gazette (http://bit.ly/17K6WHf ).
The lawsuit filed Monday alleges the company violated the Arkansas Deceptive Trade Practices act and the state constitutional prohibition against usury. It asks that consumers who paid the illegal interest rate be reimbursed, that illegal debt obligations be cancelled and that the company turn over illegally obtained profits. It also asks for penalties of $10,000 per violation, attorney fees and that Tri-State stop doing business in Arkansas.
Information from: Texarkana Gazette, http://www.texarkanagazette.comCopyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.