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Payday lenders in Arizona call it quits

Some payday lenders in Arizona have already shut their doors and more are expected to follow when a law authorizing their high-interest loans expires at the end of the month.

Starting Thursday, the state no longer will allow payday-loan operators to set interest rates as high as 460 percent annually. A 10-year-old law that allowed them to charge above the 36 percent annual rate cap imposed on other lenders will expire.

Lee Miller of the trade group Arizona Consumer Financial Services says smaller operators are expected to close, while large companies will try to find new products for Arizona customers.

Check ‘n Go has already stopped offering payday-loan services in Arizona and plans to close its 34 stores by the end of summer. The company has 102 Arizona employees.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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