Image via WikipediaPayday Advance Loans in Arizona Terminated!
PHOENIX, July 1 /PRNewswire/ -- AboutPaydayLoan.com - It looks like California isn't the only State with a Terminator running legislation. Former Arizona Assistant Attorney General Vince Rabago spent many years fighting the payday lending industry and today, with the help of Attorney General Terry Goddard on "operation sunset", they managed to terminate the payday loan business in the State of Arizona.
As a result, over 200 payday lending stores will have to call it quits; this reform in legislature will result in thousands of jobs lost within the State. Businesses in Arizona will be limited to other high risk loans, like auto title loans (Read Why Payday Loans Are Better Than Title Loans).
"It's a great day for Arizona, effectively ending predatory lending by virtue of these payday loans," says Rabago. "Arizonaconsumers will be better off without payday lending."
It seems that, once again, politicians have decided what's good for the people rather than educate them about the risks, and benefits, of payday loans. With the government limiting choices for their citizens they are turning them over to mainstream banks that have previously denied them small loans because of bad credit or no collateral. The government should, instead of abolishing the payday loan industry, regulate the sector so that "predatory lending" is no longer associated with payday loans (Read Don't Limit Payday Lending, Promote Responsible Lending Instead).
There are responsible payday loan lenders out there, like Solomon Finance, that offer feasible payday advance loans with flexible fees and payment plans. They are the type of payday direct lenders that put heavy focus on educating their customers on when it is a good time to apply for payday loan and inform the consumer about all of the risks and fees associated with the loan.
"The payday lending industry is not part of the financial problems, I believe it is the over-regulation and lack of education that is the problem. Those two factors is what makes payday loans expensive. Payday lending is a high risk business, they have some of the highest tax rates and insurance costs when compared to other financial lenders," says a Al Sefati who is a payday loan SEO consultant in Los Angeles.
There is no doubt that many Arizona residents will miss their local, and online, payday advance lenders, especially when they need fast cash loans. Furthermore, the State of Arizona will miss the considerable amount of business, employment tax and even State contributions it was making off of the payday loan industry. Apart from that, now the State has to deal with thousands of unemployed workers who will lose their jobs because of this new law.
SOURCE AboutPaydayLoans
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