There is talk of legislation that would allow payday loan competitors to offer loans in the state.

The most recent move comes as payday-loan companies…could go out of business next year when their licensing expires.

Bill sponsor, Andy Biggs has defended the legislation saying that “there will be a need for consumers to get unsecured loans if payday lenders go out of business.”

Is Yossarian living in Arizona?

Great blog by Arizona’s Expresso Pundit on the irony of the Arizona Republic publishing an editorial praising Muhammad Yunus for his work on microloans, while at the same time supporting efforts to deny Arizonans similar access to credit.

Indeed empowering poor Mexicans with microloans recognizes that they can make their own financial decisions, enter into contracts, decide how they want to spend their money and allow them the opportunities that the rest of us take for granted.

Too bad that when those same people move a couple hundred miles north, the Republic wants to deny them the same opportunities.

AZCentral.com will be updating all day with live webcasts.

The following Facebook groups support consumer choice and continued access to credit in Ohio and Arizona.  Join the Facebook groups by clicking on the logos below. 

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The Phoenix Business Journal reports that “200isNoReform.com” is now “Arizonians for Responsible Lending,” yet another branch of the Center for Responsible Lending and is working to strip Arizonians of their financial choices by capping payday lending at a 36% annual interest rate. The Payday Pundit has said it once and will probably have to say it a million times…payday loans are not annual loans, they are not mortgages, they are short term, low dollar loans. Applying an annual interest rate to them is akin to trying to rent a car for a weekend and the agent telling you how much it would be to buy the car. It makes absolutely no sense.

The Arizona Republic details the efforts to gather petition signatures so that voters can decide whether payday lenders can keep their doors open in Arizona.

If payday lending can remain in Arizona, payday operators would lower fees, provide a repayment plan with no additional cost for borrowers behind in payments and ban loan extensions.

At least 153,365 valid signatures are needed to place the initiative on the Nov. 4 ballot.

Felecia Rotellini, superintendent of the state Department of Financial Institutions, said her office receives few complaints regarding payday lenders despite the industry’s large growth since 2000.

Arizonans for Financial Reform has posted a video testimonial of customers who have actually used a payday loan. Customers explain why they used the service and why it is important for them to have the option. They clearly do not want the government taking their options away.

Go to http://www.affr2008.org/ and click on “testimonials” to view.