Bill HB 2225 is in the Arizona House as a bill that would completely ban payday loans in the state. The bill has three main provisions that really add insult to injury.
The first provision would prohibit small loans of $3,000 or less. Not only is this incredibly asinine, it is completely counter productive in stimulating the economy. Keep in mind, banks and credit unions regularly deal in loans near $3,000, but apparently no more. Payday lenders never approach more than $1,000 in a loan. So this provision not only hurts payday lenders, it hurts all lenders.
The second provision would prohibit any payday lender from receiving a certificate of authority to do business. With this provision it really makes you wonder why on earth they need the first one. That effectively shuts down any payday lender in the state right there.
If the verbal diarrhea spewed by this bill isn’t bad enough already, they have to add insult to injury. The third provision simply declares any payday lending establishment a public nuisance. Really? Seriously? Is that completely necessary? You put them all out of business and then you have to call them names? Wow…
Legislation just like this is springing up all over the country. Contact your local government to see what your state is up to. Help your local legislators understand payday loans and encourage them to not prohibit payday lenders from doing business.
