Arizona Bill May Decide Fate of Payday Lending in the State
March 23, 2010 – New York, New York — Pay lending practices have become a national issue. In Arizona, the state senate is preparing to vote on these practices. The bill would continue to let pay day lenders to charge high interest rates on pay day or short term loans. Both parties who are in favor and in contra of the bill held events on Tuesday to persuade both the public and lawmakers.
The public has already voiced their opinions in 2008 regarding pay day lending practices who adamantly were opposed to allowing payday lenders to permanently remain open. Payday lending for consumers was not supposed to be a permanent financial lending option. However, due to the vicious cycle of debt loans that were meant to be paid back in a period of two weeks are still being paid back years later. If this Arizona bill is passed, it will override the public’s opinion.
Those who are in favor of the pay lending services include those who will lose their jobs if the bill is not passed. Supporters of the bill passing argue that pay day lending is a consumer’s choice and it is not the fault of those providing the services that the borrowers are too irresponsible to pay back what is owed on their own volition.
The debate is difficult because the opponents of the bill claim that the payday lending industry takes advantage of those borrowers who the lenders know will be unable to pay back the short term loan. Not only this, but they also can charge up to 400 percent on every 100 dollars that is taken out which creates a cycle of debt nearly impossible for some to get out of.
Josh Jackson, Spokesperson for PaydayRate says, “Many actions are being taken to allow payday lending to continue to be a service for the public but to also shield consumers from unfair payday lending practices.”
About PaydayRate: PaydayRate is the leading online payday industry watchdogs. At PaydayRate, the payday watchdogs have made learning about Payday Loans fast and easy. Nobody makes it simpler, to understand the pros and cons of emergency payday lending. PaydayRate allows visitors to do their research before deciding on a payday loan. In addition, PaydayRate allows Visitors to share their experiences with companies on its educational forum.
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