Donald L. Corbin

“ Mid South is in the title-pawn business. Mark Riable is the registered agent for each of the three corporations, which runs newspaper ads targeting high-risk borrowers with "Bad Credit" and "No Credit." After receiving complaints from Mid South's borrowers, the State filed suit on April 23, 1997. In its complaint, the State alleged violations of Ark. Const. art. 19, § 13, the DTPA, and public-nuisance law. The State further alleged that Mid South's contracts require borrowers to surrender their car titles as security for repayment and pay monthly interest, or a "monthly pawn charge." ”

“ The trial court also concluded that section 4-88-107 (a) (10) does not conflict with the usury provisions set forth in art. 19, § 13. Moreover, the purpose of Arkansas's strong anti-usury policy, as reflected by the prohibition of usury in our constitution, is to protect borrowers from excessive interest rates. Quinn-Moore v. Lambert, 272 Ark. 324, 614 S.W.2d 230 (1981) . The General Assembly's intent to protect consumers by passing the DTPA promotes the purposes of art. ”

“ The trial court conducted a hearing, during which borrowers testified about the financial circumstances that had precipitated their transactions with Mid South, as well as their subsequent transactions with Mid South. The trial court denied the State's motion for summary judgment and granted Mid South's motion for summary judgment, thereby concluding that the remedies for usury set forth in Ark. Const. art. ”