| Arizona Payday Loan Reform Act |
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Payday loans in Arizona may face further regulation as a reform approaches the ballot in November. Over a quarter of a million signatures of Arizona residents were collected by the Arizonans for Financial Reform in an effort to get the measure on the ballot. To be deemed valid, and qualify for the ballot, a minimum of 153,365 signatures must be collected. Things are looking positive for those seeking to protect fellow consumers by reducing the expenses of a payday loan. The act also hopes to eliminate the burden of those that get caught in the payday loan trap, which can be a deadly cycle for any consumer. Those behind the initiative seek to implement a series of consumer friendly restrictions on the payday loan industry. This includes lowering the fees on short term loans, and preventing loan extensions. The initiative also includes a provision to bypass a legislative hearing scheduled in 2010 that could terminate the industry in Arizona. Those against the Act argue that it will lead to fewer payday loan stores in Arizona, which in turn means fewer jobs. Polls show, however, 80 percent of Arizona voters want reform in the payday loan industry. When it comes to payday lenders, reforming the industry versus eliminating the industry is clearly the better road. |