Payday Loans in Pomerene, Arizona: Understanding the Prohibitions
Pomerene, a small town located in Cochise County, Arizona, may seem like an ideal place for locals and tourists alike to enjoy quiet living away from the hustle and bustle of city life. However, if you find yourself in a financial bind and need quick cash, Pomerene, like the rest of Arizona, prohibits payday loans.
The Basics of Payday Loans
Payday loans are small short-term loans typically borrowed to cover expenses until the next payday. Applicants are required to provide proof of income and identification, and upon approval, they receive the loan amount in cash or deposited directly into their bank accounts. These loans generally come with high-interest rates, fees, and relatively short repayment terms of a couple of weeks.
The Prohibitions of Payday Loans in Arizona
In 2010, Arizona revised its laws on payday loans, amending the Arizona Revised Statutes (A.R.S. § 6-632 et seq.) and establishing strict regulations that prohibit payday lending in the state. The new laws mandated that all payday lenders had to be licensed and capped the annual interest rate on small loans at 36%. When it comes to loans with APR higher than 36%, small loan providers are now prohibited from making loans if they receive a post-dated check, debit authorization, or other access to the borrower’s bank account as security for the loans.
The Risks of Predatory Lending
Predatory lending practices arose in the early stages of the payday lending industry in Arizona. These lenders operate outside the state-licensed system and target vulnerable consumers, including low-income individuals, the elderly, and military personnel. Such lending practices usually result in prolonged debt cycles for borrowers and often push them into deeper financial difficulties, including overdraft charges, account closures, and bankruptcy.
Interesting Facts and Statistics about Payday Loans in Pomerene, Arizona
While payday loans remain prohibited in Arizona, that has not stopped some lenders from attempting to create loopholes around the law. For example, lenders might ask customers to sign car title loans instead, which can result in even higher interest rates, greater fees, and potential loss of property if the loan is not repaid.
According to a report by the Arizona Journal of Environmental Law and Policy, payday loan companies give significantly more campaign contributions to Republican candidates in Arizona than Democratic ones. Some payday loan companies also donate to charities and foundations, which enables them to promote their services under a positive banner.
Ways to Obtain Financial Assistance in Pomerene, Arizona
Fortunately, getting financial help during emergencies is fortunately not limited to payday loans. In Pomerene and Cochise County, several other alternatives exist to borrowers who need fast cash, including:
- Personal Loans: Borrowers may consider applying for personal loans from local Pomerene banks or credit unions. These loans have longer repayment terms and lower interest rates than payday loans, making them a better option for those looking for better credit options.
- Credit Counseling Services: Several non-profit organizations in Pomerene provide budgeting guidance, financial education, and credit counseling services to help individuals improve their financial situations.
- Emergency Assistance Programs: Cochise County has several emergency assistance programs that provide short-term financial assistance and utility payments to low-income individuals and families. Check the local government offices and departments for more information on the programs available in Pomerene.
Apply Now
If you are in financial distress in Pomerene, Arizona, TheGuaranteedLoans can connect you with potential online lenders, including personal loans and other secured loans. Apply now and receive a direct link to the lenders that may be willing to work with you under your set terms. Please note that TheGuaranteedLoans is not a direct lender, and all lenders on our platform are independent, responsible licensed lenders. Sign up today, and we will work to secure the funding you need.