Southwest Center for Economic Integrity

Payday lending erupted in Pima County and across the state with the passage of legislation in 2000 which exempted these short-term loans from the standard usury cap of 36% annual interest. Arizona statutes now allow interest rates of 15%per two-week period for payday loans, translating to an annualized percentage of over 450%.

Contrary to the popular belief that these loans bridge gaps in emergency situations, most borrowers the Center interviewed (74%) needed their loans simply to pay monthly bills. 60% of the borrowers also needed more than two weeks to repay their loans, and so incurred costs far exceeding 15%. The average paid among those surveyed was 38.5% ($154.25 on a $500 loan). Close to 10% of borrowers surveyed paid back double the amount that they initially borrowed. Extrapolating from industry data gathered in other states and a number of individual corporate reports, payday lending customers are paying between $13 million to $25 million in fees and charges every year in Pima County. Because not all payday lenders have registered with the state, we believe $20 million is a fair estimate for the charges and fees paidannually by borrowers in Pima County

Payday Lenders Target Miltary


Home ................................. About Us ................................. Publications ................................. Legislative Updates ................................. Get Involved ................................. What's New ................................. Worker's Corner ................................. Contact Us ................................ Site Map ................................. Initiatives: Gulf Coast Alternative Staffing Initiative Mortgage Lending Payday Lending Day Labor Don’t Borrow Trouble® is an unbiased, Freddie Mac and community-sponsored, non-profit agency that knows the programs, products and people throughout Tucson. These resources can help you understand your financial decisions when it comes to homeownership and payday lending practices. Hotline (520)792-3087	Payday Lending Payday lending erupted in Pima County and across the state with the passage of legislation in 2000 which exempted these short-term loans from the standard usury cap of 36% annual interest. Arizona statutes now allow interest rates of 15%per two-week period for payday loans, translating to an annualized percentage of over 450%. Contrary to the popular belief that these loans bridge gaps in emergency situations, most borrowers the Center interviewed (74%) needed their loans simply to pay monthly bills. 60% of the borrowers also needed more than two weeks to repay their loans, and so incurred costs far exceeding 15%. The average paid among those surveyed was 38.5% ($154.25 on a $500 loan). Close to 10% of borrowers surveyed paid back double the amount that they initially borrowed. Extrapolating from industry data gathered in other states and a number of individual corporate reports, payday lending customers are paying between $13 million to $25 million in fees and charges every year in Pima County. Because not all payday lenders have registered with the state, we believe $20 million is a fair estimate for the charges and fees paidannually by borrowers in Pima County Payday Lenders Target Miltary	Predatory Profiling: The Role of Race and Ethnicity in the Location of Payday LEnders in California March 2009 Center for Responsible Lending Report: Springing the Debt Trap published December 2007 The National Consumer Law Center issued a report on how utilities are funneling their most financially-vulnerable customers to payday loan stores Utilities and Payday Lenders: Convenient Payments, Killer Loans. Woodstock Institute is pleased to release Cooperative Credit: How Community Development Credit Unions are Meeting the Need for Affordable, Short-TermCredit. Lawmakers must step up to reign in payday lenders Guest Opinion: It's high time to shut down predatory lenders PDL Locations Tucson & Pima County Payday Lenders Target Young Military Families Proposed Federal Amendment Well's Fargo Share Holder's Resolution Payday Lenders Sue More Clients Get Money Fast...beware of payday lenders A new consumer website exposes the trappings of high-cost, high-risk payday loans, and its online calculator shows you exactly what it costs to borrow money from a payday lender (Consumer Federation of America). http://www.paydayloaninfo.org/
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	Promoting Ethical Profits and Responsible Commerce

Woodstock Institute is pleased to release Cooperative Credit: How Community Development Credit Unions are Meeting the Need for Affordable, Short-TermCredit.

Lawmakers must step up to reign in payday lenders

Guest Opinion: It's high time to shut down predatory lenders