Leadpile's Blog» Arizona

Arizona Payday Loan Update

Natasha Aronov — Sat, 20 Mar 2010 01:26:29 +0000

As a follow up to our recent posting regarding Arizona Payday loans, the Senate Appropriations Committee voted 5-3 against the bill that would have allowed lenders to continue offering the high-interest short-term loans with the proposed adjustments to the rules.
In Arizona there are currently 596 Payday Loan businesses that provide employment for 2,500 people. The risk of these people losing their jobs is high, as well as loan customers will have to turn to most likely more expensive options to receive quick cash short-term loans.
The bill would have allowed fees of $15 per $100 borrowed, restricted the number of loans an individual could take out at one time and allowed a customer to rescind the transaction if the money was returned within two business days.
LeadPile will continue to keep a close eye on this and keep you updated on any new developments or possible hope for the AZ Payday industry!

Hope for the Payday Industry in Arizona?

Natasha Aronov — Mon, 15 Mar 2010 21:23:01 +0000

Arizona may have good news for the Payday loan industry this week as an amendment will be heard on Tuesday at 1:30pm. Adjustments suggested would restrict the number of loans a person could take out at one time, allowing fees of $15 per $100 borrowed, and also allowing the consumer to cancel the transaction if the borrowed money is returned within two business days. The amendment would require businesses to give at least 1.5 % of the fees it collects to “organizations that provide services to low-income and moderate income individuals” in their community.

Debates in AZ for Payday Lenders continue..

Natasha Aronov — Tue, 23 Feb 2010 15:21:57 +0000

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!

Arizona Payday Loan Bill Delayed

Natasha Aronov — Thu, 04 Feb 2010 14:09:51 +0000

As a follow up to our past entries regarding the payday loan industry in Arizona, the bill that would allow lenders to continue offering payday loans has been delayed.

According the azcentral.com the bill was pulled out of a hearing agenda recently. Republican Rep. Andy Tobin supporting the bill said that currently it does not have enough support, but vowed that more support would be gathered and the bill would be brought back.

Currently payday lenders are operating under a temporary exemption from Arizona’s 36% cap on annual interest rates. This exemption is set to expire on June 30th.

Good News For The Arizona Economy

Natasha Aronov — Wed, 27 Jan 2010 03:42:42 +0000

House prices have not been on the rise for six straight months in a row. Fourteen out of twenty metro areas saw an increase in homes from the month before. As of November, 2009 was up 3.4 percent from its lowest back in May, 2009. Phoenix (Arizona) and San Francisco (California) have had the highest month over month increase in their housing markets. Both New York and Chicago had the largest declines in the nation. One of the largest reasons for the increase was the first time home buyer tax credit. With the original end date for the tax credit being in November of 2009, there was a rush to purchase a new home (the tax credit ended up being extended to the spring of 2010). The tax credit was a huge incentive to purchase a home, and with the home prices in Arizona being so low, it makes sense that Arizona saw one of the highest increases in their housing markets.
One of the big questions is if the trend is going to continue to increase? Some economists believe that there is going to be another dip in the housing market because of the the high rate of unemployment and foreclosures. It is expected that we will see these results in the beginning of this year. It goes without saying that now is the time to buy. Depending on the area, people are seeing move in ready houses for as low as $50,000. That is less than a college education!
If you find that you are one of the many who are having trouble keeping your home you may want to consider a loan modification or debt consolidation. Leadpile is trying to do it’s part by matching up the consumers with lenders on a daily basis! Heck, we want the economy to be better too!

Brick and Mortar payday loss is online payday gain

Mari Holt — Mon, 10 Nov 2008 15:20:28 +0000

Sad days for those in AZ and OH with regards to payday loans. Many are not sure how these initiatives lost in the voting, however they did. This is going to affect a lot of brick and mortar stores located in these states. This is a very large deal, because there are quit a few stores located in these states. Where do we go form here?

According to PDL blog, image might have had something to do with being able to get legislation passed on the payday loan industry. Did the misconception of a payday loan really have that much affect on those that were voting on these propositions, or did voting consumers really not want to have payday loans around any longer? Now some lenders in these states and going to be closing down some of their stores. So how will this affect the internet payday loan industry? Will it be affected?
The good news is that some of these lenders that will be closing down locations, will now be looking at alternative options to offer the consumers. One of the alternatives is a short term unsecured loan. This type of alternative will then be able to still provide some assistance to those that are in a temporary situation, but do not have the ability to get a payday loan or any other “bank” loan.

Time will tell. I am sure all eyes will be on this industry to see if this recent legislation will affect what direction other states pursue……. or if there is a way to “try again” to get this legistration overturned. Leadpile Lead Exchange realizes that there are consumers that really need assistance with their unforseen debt/bills. We will continue to try and match up those consumers with the lender that can help them take care of this issue. Loan modification, tax debt relief, debt consolidation, debt settlement, credit repair and others are lead types where we are trying to get the necessary help to the consumers.

Fees Associated With Payday Loans

Mari Holt — Wed, 29 Oct 2008 14:10:28 +0000

Time is running out for consumers to read up on all the popositions being presented to them on the November 4th ballet. One thing that is being voted on in the states of Ohio and Arizona, is in regards to payday loans. How much does everyone really understand about payday loans? One myth I thought very important to point out:

Myth: Payday lenders hide fees and mislead consumers.

Fact: Just like any other service or loan you obtain, there is a cost to do get that loan or service. In addition, any payday loan you take out there will be a cost to taking out the loan. According to the CFSA website, “The cost of a payday advance is fully disclosed to customers on signs in the stores and in disclosure agreements. Moreover, in accordance with the Truth in Lending Act (TILA), the terms of the loan are clearly outlined in the lending agreement. Payday advances involve single, flat fees and there are no hidden charges, balloon payments or accruing interest. CFSA members also provide an educational brochure emphasizing responsible use of the product and offer a free right of rescission should the customer change their mind.”

CFSA also went on to say that in a recent survey 96% of the people were aware of the fees associated with taking out the payday loan. Just like with any other loan, there are documents presented to the consumer with all the fees of doing the loan in black and white. Are people sometimes just so anxious to get a loan, that they do not take the time to read the documents they are signing?

Leadpile Lead Exchange wants consumers to read everything before agreeing to take out a payday loan, or any other loan. Knowledge is power!

FACT or FICTION: Regulating The Payday Industry

Mari Holt — Wed, 22 Oct 2008 14:16:14 +0000

The payday loan industry is getting a lot of attention, especially in the states of Ohio and Arizona. Those on the outside possibly do not fully understand the payday loan industry and there are some misconceptions about the short term loans.

Myth: Payday loan lenders do not want to be regulated.
FACT: According to CFSA, this is quit the contrary. Most payday lenders do want to be regulated and have certain industry guidelines. However, there are those that are trying to eliminate the industry as a whole, and not deal with keeping the “good guys” in business.
Currently, there are 37 states + the District of Columbia that have payday regulations. CFSA is working on trying to get regulations implemented on the remaining states, however they are not wanting to see the industry go extinct. Therefore, the question is… why is the payday loan industry going through such tough scrutiny, when in comparison with credit cards and other financial services there are similar costs/fees associated with them?
Leadpile Lead Exchange understands there are a lot of myths about payday loans, however the key is for those that are not fully educated on the industry, to read up to fully understand all aspects of this financial product compared to others. There is good to these types of loans, and they are sometimes very much needed.

AZ Attorney General Asks Lenders For Help

Mari Holt — Fri, 10 Oct 2008 14:28:56 +0000

In an effort to help distressed homeowners, Arizona attorney general Terry Goddard is asking mortgage lenders to set up streamlined modification plans for their mortgage customers. This is similar to what Countrywide recently rolled out to their mortgage customers. In addition to AZ, there are 9 other states such as California, Ohio, Illinois, and Texas. According to The Phoenix Business Journal, the lenders these states are approaching are Wells Fargo Home Mortgage, JPMorgan Chase, Morgan Stanley Home Loans, HSBC Finance Corp, Citigroup, and American Home Mortgage Servicing Inc.
I am not sure why all 50 states are not apart of this action, however it seems like a logical way to start putting a dent in what is going on with all the bad loans on the books. I hope we will hear more about this, because this might be one of those occasions where we WANT the government to get involved.

Scottsdale, AZ Imposes Tougher Payday Regulations

Mari Holt — Mon, 15 Sep 2008 14:10:19 +0000

According to The East Valley Tribune Saturday, Scottsdale City Council has voted to impose tougher regulations on payday loan stores that are in Scottsdale, AZ. This was imposed to try and decrease the number of stores in the city. The Scottsdale City Council had agreed to implement minimum distance requirements between these payday loan stores. The specifics of the new restrictions will be determined in upcoming council meetings. Mayor Mary Manross had previously requested the council to pursue new regulations, saying she wanted to avoid an increase in stores that do not “lend themselves to uplifting neighborhoods and centers.” Also, Proposition 200 will be voted on by the public in November to determine whether to allow payday loan operations to continue past their current expiration date of July 1, 2010.
Should Scottsdale be able to control the number of payday stores doing business in it’s city?