Goodyear, Arizona Has Bad View of Payday Loans
By J.J. CameronPayday Loan Writer
Some in the city of Goodyear are worried about high interest rates on fast payday loans. The APR on these advances can range from 300 to 1,000 percent have.
Areas leaders recently approved a measure aimed at limiting the number of payday loan businesses. It's part of a larger trend sweeping across Arizona, as rules have been set in place across Peoria, Pima County, Tempe and Tucson, all forcing distance between one payday loan company and another.
It's also something that Phoenix officials are also considering through the alteration zoning laws as they relate to payday loans.
The latest Goodyear measure, approved unanimously by the City Council, mandates a 1,320-foot separation between non-chartered financial institutions. This essentially limits the number of payday loan stores to four per mile. Goodyear City Councilman Dick Sousa voiced his support for the new city limits. Discussing the overall concept of cash loans, he said:
"It's unconscionable," Sousa said. "To me it's quote unquote 'criminal.'
Leaders at Luke Air Force Base asked communities surrounding the base to examine military payday loan stores several months ago, Attorney Roric Massey, a city attorney, said. These payday advances can be a problem for Luke because some on the base are struggling to get by.
The latest Goodyear move doesn't affect banks and credit unions, which operate with state or national charters. It does, however, affect businesses that generate more than 25 percent of their bottom line from check-cashing, deferred-payment and pawn-brokerage services, as well as payday loans and auto title loans.
