Arkansas Attorney General Dustin McDaniel announced an agreement with Kansas-based collection agency National Credit Adjusters, the terms of which require the collector to stop attempting to collect on illegal payday loan debt in Arkansas. In a consent judgment filed in Pulaski County Circuit Court, NCA agreed to halt its efforts to collect more than $2.7 million on 5,810 loans that will be canceled as part of the agreement. NCA additionally will pay the state of Arkansas $200,000 to be distributed to higher-education institutions. McDaniel said the company misrepresented to Arkansas consumers that the debt it tried to collect was enforceable, although this was not the case under Arkansas law. NCA purchased a large number of debts from payday loans bearing exorbitant interest rates that exceeded the amount allowed by Arkansas law. The AG filed suit against the company in 2012, alleging violations of the Arkansas Deceptive Trade Practices Act.