Arizona

Operation Sunset is set to end payday lending in Arizona. What will the effects be? Image from Flickr.

In June of 2000, the Arizona legislature approved a bill that gave payday lenders 10 years of authorization to operate within the state. In November of 2008, Arizona voters defeated a ballot proposition that would have extended this authorization indefinitely. As of June 30, 2010, payday lenders in Arizona will no longer have legal authorization to operate.

New lending limits in Arizona

As of June 30, 2010, lenders in Arizona will be required to comply with several new regulations. All loans, including short-term loans, will be limited to 36 percent interest plus 5 percent for administrative expenses. Auto title lending and prepaid debit cards are two forms of short term credit that will still be available to customers in Arizona. The Arizona attorney general has set up a Facebook page, website and tip line where they are encouraging citizens to report any lenders they believe are operating outside the new legal framework. … click here to read the rest of the article titled “Operation Sunset to end payday lending in Arizona

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