Debates in AZ for Payday Lenders continue..
June 30th is the date that the Payday loan industry in Arizona will have to fight to survive past. The industry has many advocacy groups and local businesses supporting a bill that would allow the short-term loan companies to continue operating. Supporters of the bill believe that this economy has shown short-term smaller loans are necessary and not easily available from banks or credit unions; the lower dollar amount loans are helping a lower income or “fallen on hard times” part of the population.
In recent weeks, there have been talks on the largest debate surrounding the Payday industry, the interest rates. The interest rates are currently under a temporary exemption from the 36 percent, charging $17.65 per $100 borrowed for a 2 week loan; this exemption would expire on June 30th. The Payday loan lenders would possibly not generate enough revenue to cover overhead costs if capped at 36%, however this is the number that Representatives from the minority House Democrats would like to hold them to…
As these discussions continue and the debate grows, LeadPile will continue to keep you updated!