Citizens of Arizona voted to ban the outrageous interest rates offered at Payday Loan Centers throughout their state and as of June 30, 2010 hundreds of stores have shut their doors or changed their business focus. In order to stay open as a payday loan center in Arizona, companies cannot charge more than a 36% interest rate. While 36% interest may seem exorbitant, it is nothing compared to the close to 400% that consumers were charged. In Arizona, a $17 fee on a 14-day $100 loan was not unheard of. Once the Arizona law went into effect, it became the 17th state in the union to ban the traditional payday loan centers.
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