In Greer, Arizona, payday loans are not legal according to the Arizona Revised Statutes Section 6-632, which states that all payday lending is illegal in the state. But what is a payday loan, and why are they not allowed in Arizona? In this article, we will explore what payday loans are, how they work, the laws in Arizona regarding payday loans, and alternative options for those who need a loan.
What are payday loans?
A payday loan is a short-term loan, typically taken out for a small amount of money, to be repaid by the borrower’s next payday. These loans often come with high-interest rates and fees, making them very expensive and risky for borrowers.
The process of applying for a payday loan is typically quick and easy. Borrowers fill out an application, and if they are approved, they receive the funds in their bank account within one to two business days. Repayment is usually due on the borrower’s next payday, either in the form of a post-dated check or an automatic debit from their bank account.
Arizona laws regarding payday loans
As previously mentioned, all payday loans are illegal in Arizona. In 2008, the Arizona legislature passed the Arizona Consumer Lenders Act, which abolished payday loans and other predatory lending schemes in the state. The law was designed to protect consumers from the high interest rates and fees associated with these types of loans.
Despite the law, some lenders still attempt to offer payday loans by partnering with out-of-state banks or lending institutions. However, the Arizona Attorney General’s Office has taken legal action against these types of lenders, resulting in court orders prohibiting them from offering payday loans in Arizona.
Alternatives to payday loans
For those in need of funds, there are alternative options to payday loans. One option is a personal installment loan, which allows borrowers to borrow a larger amount of money and pay it back over a longer period of time with fixed monthly payments and interest rates. Another option is a credit union loan, which typically has lower interest rates and fees compared to traditional bank loans.
Borrowers can also consider other options, such as borrowing from friends or family, selling unwanted items, or finding a side job to earn extra cash. It’s important to explore all options before turning to payday loans or other high-interest loans.
Interesting facts and statistics about payday loans in Greer, Arizona
- There are no payday loan stores in Greer, Arizona due to the state law banning payday lending.
- According to the Center for Responsible Lending, in states where payday lending is legal, the average interest rate on a payday loan is 391%.
- Between 2005 and 2008, the number of payday lending stores in Arizona increased by over 200%, which led to the state passing the Arizona Consumer Lenders Act in 2008.
- In Arizona, the average payday loan borrower takes out 10 payday loans per year, spending nearly half the year in debt.
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While payday loans are not legal in Greer, Arizona, it’s important to remember that unexpected expenses can still arise. If you find yourself in need of funds, TheGuaranteedLoans can help connect you with potential lenders who can offer alternative loan options. Don’t let unexpected expenses get you down, apply now!