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The exemption ended up being planned to sunset in July 2010, from which time payday loan providers would simply be in a position to charge a 36 % APR.

The exemption ended up being planned to sunset in July 2010, from which time payday loan providers would simply be in a position to charge a 36 % APR.

Table1. Prices on payday advances and Regulations to manage Payday Lending

advance america payday loans payment plan

State Interest Rate+ reputation of Meaningful Legislation to manage Payday Lending
Arizona 36 percent* Has eradicated the Payday Debt Trap Through APR Limits
California 426 per cent No regulation that is meaningful of Lending
Colorado 214 per cent Has Implemented Reforms that Limit but Do perhaps not eradicate the Payday Lending Debt Trap
Nevada 521 % No significant legislation of Payday Lending
brand brand New Mexico 564 % No significant legislation of Payday Lending
Texas 417 per cent No significant legislation of Payday Lending
Utah 443 per cent No significant legislation of Payday Lending

+ Source: Center for Responsible Lending

* In June 2000, Arizona legalized lending that is payday moving an exemption into the state’s rate of interest limit on tiny loans. Inspite of the payday lending industry’s efforts to cancel the sunset ( by way of a 2008 ballot measure Proposition 200 “Payday Loan Reform Act”), the sunset went into impact and today payday loan providers running in Arizona can just only charge 36 %.

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