By Howard Fischer Capitol Media Services
PHOENIX — A state lawmaker who fought to rid Arizona of payday lenders now wants new restrictions on the securities lending industry.
Representative Debbie McCune Davis, D-Phoenix, said the triple-digit interest rates charged to consumers are as abusive as those charged by now-defunct companies that provided short-term payday loans.
In fact, she says, title loans are sometimes worse because, unlike payday loans, there’s no limit to the amount that can be borrowed.
McCune Davis wants to require title lenders to adhere to the 36% annual interest cap that applies to other consumer lenders.
His proposal comes as the Consumer Federation of America and the Center for Economic Integrity release a report on Tuesday, Jan. 26, saying the securities lending industry has exploded in Arizona since a statewide vote in 2008. to kill the payday loan industry in 2010.
He says there were only 159 loan locations at the time. There are now more than 630, a figure they say exceeds the number of payday lenders who gave up their license in 2010.
This means, according to the two organisations, that there is one outlet for every 8,072 adults, a figure they calculate for the seventh most concentrated securities lending market in the country.