Payday loan businesses routinely charge 390-460 percent to their customers. Prior to 2000, loans with annual interest rates of more than 36 percent were illegal in Arizona. But, that year, industry lobbyists convinced lawmakers to approve what are technically called “deferred presentment transactions” that circumvented the limit. At the time, the Legislature put a time limit on the allowance of these types loans.
That was basically what the referendum was all about — allow the continued gouging of the everyday citizen or revert to the pre-2000 limit.
Despite the industry tossing millions into a publicity campaign to allow continuance of these types of loans, Arizonans voted by a 3-2 margin to put an end to these high interest rates.
Citing the jobs the industry provides in the state, House Majority Whip Rep. Andy Tobin, R-Paulden, plans to introduce a bill that would negate the voters’ decision. Of course, job losses are a sensitive political issue in a state that has had so many unemployed due to the economy.
source here.
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