Payday Loan Companies May get to Stay in Arizona

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The governor of Arizona says she’s willing to consider legislation to let the payday loan industry remain in business. The public voted to kill the initiative to repeal a law that will make them go out of business at the end of next June.

The payday loan industry offered to alter their business practices, including lowering their interest rates, a ban on rollovers and an interest-free repayment plan for those who can’t make good on their checks at the end of two weeks.

GeteCash.com typically loans for 14 days. The finance charge for $300 borrowed would be $99.

Brewer said she cannot say whether there is a need for the industry which essentially provides are two-week unsecured loans of up to $500. GetECash lends up to $1,000.

The governor said some people need payday loans, “Certainly, there are people out there that do believe there is a need,’ she said. “There’s a lot of people using those kinds of facilities.’

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