A state lawmaker has introduced a bill that would allow payday lenders to continue operating indefinitely in Arizona.
The law authorizing payday loans expires June 30. The measure sponsored by Republican Rep. Andy Tobin of Paulden would repeal the termination date and change some regulations.
Payday loans allow people to borrow money against their future earnings. Arizona voters in 2008 rejected a ballot measure that would have indefinitely authorized payday loans, often at high interest rates.
Opponents of that measure said the loans pray on borrowers, who sometimes get trapped in a circle of debt, taking new loans to pay off old ones. Supporters say the loans are an important tool for people who otherwise wouldn’t be able to borrow money.