money ina flash.net

February 28, 2006

ATTORNEY GENERAL MIKE BEEBE SUES JONESBORO COMPANY FOR PAYDAY-LOAN SCHEME

Internet-service contracts used as front for loans exceeding 500% interest



Attorney General Mike Beebe today filed a lawsuit against Money In A
Flash.net of Arkansas, a Jonesboro company that entered into contracts with
consumers for Internet service that also included loans at unconscionable
and unlawful interest rates.

Under the terms of the contracts, consumers would receive up-front loans
disguised as "rebates" from Money In A Flash.net. They were then required
to make monthly or biweekly payments to the company - payments that
translated into annual percentage rates of up to 520%. Under the terms of
some contracts, consumers would be obligated to pay $1,560 in a year in
exchange for $300 in "rebates".

"This is an especially egregious example of a company using deceptive
practices to take advantage of consumers through illegal high-interest
loans," Beebe said. "This company not only charged outlandish interest rates
to customers who received these 'rebates', but they also withdrew the money
directly from their bank accounts if they did not pay in cash on schedule.
We will not allow this in Arkansas."

On top of the payments, Money In A Flash.net additionally charged up to 1/3
of the rebate to any consumer who tried to terminate the one-year contract
before it ended. Like the regular monthly or biweekly payments, that money
would also be withdrawn directly from the consumer's bank account if not
paid in cash.

The lawsuit accuses Money In A Flash.net and its four owners of
misrepresenting the contracts as arrangements for Internet access when in
fact the transaction is a sham to disguise high-interest loans. Beebe is
seeking an injunction to stop the loans, restitution for consumers and civil
penalties.

The four named owners in the lawsuit are Dwight Blake, Elaine Blake, Robert
Blake and Yvonne C. Clark.