Lending industry persuades Senate panel to advance bill permitting high-interest loans
Nearly a decade after Arizona voters outlawed “payday loans,” the lending industry is trying to get its foot back in the door with a new type of high-interest consumer loan.
And they’re getting the help of Republican legislators.
Legislation approved by the Senate Appropriations Committee would legalize what proponents have dubbed a “Consumer Access Line of Credit,” which would provide for revolving loans of up to $2,500.
But the most significant provision of HB2496 is it would permit lenders to charge what proponents call a “daily transaction fee” of 0.45 percent per day, a figure that computes out to an annual percentage rate in excess of 164 percent. By contrast, state law caps interest on most other loans at just 36 percent a year.
Read more: http://azcapitoltimes.com/news/2017/03/21/lending-industry-persuades-senate-panel-to-advance-bill-permitting-high-interest-loans/
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