Payday Loan Times

Mesa, AZ — Arizona payday loan companies are seeking to extend a 1999 payday loan law that will allow payday lenders to continue to operate in Arizona. The lenders have agreed to make changes in their practices if the state extends the law.

The changes would include payday loan lenders requiring customers to sign a document stating they have no other cash loans with other payday lenders.

Though the lenders certainly have enough time since the law does not expire until 2010.

Phoenix, AZ — Phoenix planners are drafting an ordinance that would require that payday loan stores must be at least 1,000 feet apart. While city officials admit that these new zoning laws won't change lending practices of stores that offer the cash advance loans to consumers at high rates of interest, they will at least help curb the clustering of such businesses in low-income neighborhoods.

Clovis, NM — The New Mexico attorney general's office is concerned about the lending practices of payday loan companies and is proposing stricter regulations.

The office hosted a meeting on Wednesday at the Clovis-Carver Public Library to discuss proposed regulations. These regulations included eliminating 14 or 30 day loans and a cap on interest (set to 54%) and services.

Pennsylvania's Attorney General shut down payday loan website owned by Ace Pays, Inc. The website was advertising payday loans that charged more than 600% APR.

Ace Pays, Inc., will shutter its Internet site, pay $70,000 in fines and costs, and refund consumers the amount of interest paid above the maximum 6 percent allowed under Pennsylvania law, said Attorney General Tom Corbett and Pennsylvania Banking Secretary Bill Schenck. 

South Carolina — Advocacy groups are pressing the South Carolina General Assembly to limit the number of payday loans borrowers can have. Currently, South Carolina law limits the size of cash advance loans to $300 and a max fee of $45. However, there's no limit to the number of loans a borrow can have at a single time.

This of course can lead to debt as many borrowers will take out additional payday loans to pay off existing ones. Thus begins the vicious cycle of debt.