Arizona payday loan operators still have a shot at continuing to offer their product; albeit a long one.
Many payday lenders have other lines of business, including car title loans, check-cashing services, scrap gold buying and acting as agents for the Motor Vehicle Division to register vehicles. Rapid tax refunds (RALS) are in the mix as well.
So, while operators try to develop a strategy for remaining in the payday loan business, Arizona legislators are prepared to debate legislation next week that could change existing payday loan laws to allow lenders to impose an “origination fee” of up to 7.5 percent for loans up to $1,000.
Additionally, Arizona payday loan operators could charge a $10 fee for preparing documents and obtaining a credit report on the Arizona payday loan applicant.
We’re a creative bunch! Those payday loan operators who remain flexible and informed will survive and prosper. Installment loan products, CSO ( Credit Services Organizations) Models, Internet offerings and more will appear to help Arizona residents gain access to credit. Regulating payday loan operators out of existence does NOT cause demand for our product to disappear. Every independent study conducted emphasizes the need for the existence of small, no hassle, non-collateralized loans. Payday loan consumers are actually a pretty bright bunch – in spite of what our government bureaucrats think.
And, it’s important to note that it was NOT payday loan consumers, those middle-class folks who ACTUALLY used our product, who complained about the payday loan industry. As usual, it was the elitists who THINK they know what’s best for everyone else who restrict our financial choices.
Wait until they attack your business! You sell some type of product or service? Maybe you run or are employed by a business that, so far, has escaped the busy bodies who lurk in the entrepreneurial trenches? Wait until THEY decide you should not be allowed to sell french fries, cokes, sell two cheeseburgers to your customer rather than one. Maybe you’re involved with the automobile industry, you’re a hair stylist, … Then, when your business is attacked you’ll finally join our bandwagon and fight to keep government out of our pockets and our businesses.
Oh! Come to think of it, THEY already have their hands on your entrepreneurial throat! What are you going to do about it?