Arizona Payday Lenders - hard experience

Aug. 4, 2010 - PRLog -- According to the recent bill adopted by the government the state of Arizona allowed the licenses of payday lenders to lapse. Currently Arizona payday lenders http://paydayloanslenderswithbadcredit.blogspot.com/ are winding up their business and moving to other more favorable places. The bill of financial reform is awaiting for being signed by the President. According to the bill the customer protecting agency is going to be created within the Federal Reserve, which will regulate the lending industry in the state. Today these financial changes relate only to Arizona payday lenders but already tomorrow this fate may happen to the lenders all around the country.
Arizona payday lenders experience hard times
Nowadays there are many articles discussing the impact of the new usury cap recently adopted in Arizona on direct lenders' interest rates. The annual interest rates have been significantly reduced and now the lenders are having hard times keeping their doors open. The largest payday lending company in the state Check’N'Go immediately closed 11 of 34 its shops. More than 100employees belong to the company in Arizona and all of them will be closed by the end of August. The remaining centers will either change the loan type or just close their doors as well. With the adoption of the bill the cases of bankruptcy, debt collection and bounced checks are getting quite common.
The concept of financial reform
According to the financial reform bill the Consumer Financial Protection Agency is going to be created within the Federal Reserve. The bill has already been passed by the Senate and now it is awaiting for the President's signature. The experts say that if the rate cap is applied countrywide the whole payday lending http://paydayloanslenderswithbadcredit.blogspot.com/2010/... industry will be destroyed.
Who will benefit?
Governors think that the new legislation will help consumers avoid bad loans and high interest rates and payday lenders in Arizona will have to follow the same standards as for credit cards and mortgages. It seems that this bill is very useful for the customers who will stop getting into the loan trap. However there is a question who will lend money to people if Arizona payday loan lenders http://paydayloanslenderswithbadcredit.blogspot.com/2010/... just close their doors or bankrupt? The question remains open.

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