High-interest lenders have circumvented an Arizona ban on payday loans by migrating to auto-title loans, including those where borrowers don’t own their vehicles, a study critical of the practice has found.
More than one-third of companies now providing high-cost loans on vehicles here were licensed as payday lenders more than a decade ago, when Arizonans voted to ban payday lending, said the Tucson-based Center for Economic Integrity in a report released Aug. 5.
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