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Home / AZ: Payday Loaners Fight To Stick AroundAZ: Payday Loaners Fight To Stick Around
Last Updated on Friday, 22 August 2008 10:33 Written by rslcpol Friday, 22 August 2008 10:33
From the East Valley Tribune:
Payday lenders have already put up close to $9 million in a bid to persuade voters to keep the industry alive in Arizona.
And there’s still more than two months to go before the election.
The cash is being spent to preserve a special provision in state law now enjoyed by the lenders.
Arizona law generally limits the annual interest on loans to 36 percent.
But lawmakers agreed in 2000 to carve out a special exception for payday loans.
The practice allows people to borrow up to $500 for up to two weeks, with the lender agreeing to accept a postdated check written out for the amount sought plus up to $17.85 per $100 borrowed.