State Agency Looking into Payday Lender

by Mike Bevel, CollectionIndustry.com

The Arkansas State Board of Collection Agencies is gathering evidence against the owner of a Mountain Home check-cashing business.

Turns out Dennis Bailey, owner of 14 check-cashing stores in the state, didn?t necessarily have licenses for the businesses. To teach Bailey a lesson, the ASBCA fined Bailey $1.3 million in June and ordered all his stores closed. The order also voided all transactions between Fast Cash stores and their customers, and customers were not obligated to repay the loans.

That?s well and good if you?re one of Mountain Home?s check cashing customers, now scot-free with the cash. Understandably, Bailey hasn?t been quite as happy with the outcome. Through his attorney, Paul Johnson of Little Rock, Bailey is appealing the agency’s order.

While the Mountain Home store remains closed, Bailey has sold his stores in Camden, Sheridan and Bryant to a family member, and is trying to sell stores in Hot Springs and Little Rock, Matson said.

The new owner, Sam King of Sheridan, has state licenses for the stores but is not allowed to re-hire Bailey’s former employees. He also is not supposed to use the store’s previous customer list, although the agency has received reports he has contacted former customers.