Leadpile’s Blog

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.

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?