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Payday lenders switching to different loans

Posted: Jun 25, 2010 5:19 AM
Updated: Jun 25, 2010 5:21 AM

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TUCSON - The end of payday loans is days away. On June 30 at midnight, they will officially become illegal in the state of Arizona.

News 4 called every payday lender in Tucson. We found either their number was disconnected or they told us they were now offering a different type of loan. Most are now offering auto title or registration loans. One business said they now have a line of credit Mastercard. Another said they have a fast cash consumer loan at 36 percent. That's the new cap on the loans. Customers were paying up to a 400 percent APR on payday loans.

Click here for more on payday loans and a list of licensed consumer lenders, http://www.azag.gov/operation_sunset/common-questions.html#9

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