More Payday Lenders In Arizona Than McDonald's And Starbucks Combined

The payday lending industry is seemingly out of control in Arizona: There are more payday lenders than there are Starbucks and McDonald’s combined. From KTAR:

“According to data supplied by the Children’s Action Alliance, there are now more payday loan facilities in Arizona than there are Starbucks and McDonalds combined,” she says.

“In the real world and on a daily basis we meet people who have 5, 6, 7, 8. I met one man who had 10 loans at the same time.”

A new bill up for vote in the Arizona legislature would limit the amount of loans any one person could take out to 2. —MEGHANN MARCO

House Cmte. Approves Payday Loan Bill [KTAR]
(Photo: ten safe frogs)

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  1. Nicholai says:

    10 payday loans! wow, that’s scary.

  2. jgkelley says:

    I worked for a company that had payday loan stores under multiple names. It was not uncommon to find people who had a loan under all the different instantiations of our company, even though it would be against rules for them to have more than one at a single store. They would literally borrow from one to pay another, at increasing rates, until eventually they owed two or more. Each time this happened the company made a profit. There were repeat borrowers who had upwards of 20-80 loans over a period of 5 years. That a person who is willing to take out 2 payday loans would be willing to take out 10 is not surprising at all – we also had people take out a dozen from every store in the area, which we discovered when they filed bankruptcy the next day (this was before new bankruptcy laws).

  3. VA_White says:

    I live in Arizona and there are payday lenders absolutely everywhere on every street in every neighborhood. I don’t have any idea how they all stay in business.

    My neighborhood is a nicer middle-class suburb and we have a payday lender in the strip mall next to our local grocery store. The dollar store closed because no one would go in there and buy crap for a dollar – this is *not* a dollar store neighborhood – but the payday lender is still there.

    I wonder who the hell goes in there? I have never seen a customer in the store but the store has been open two years so they must be getting some business to stay open. If the moms in my neighborhood saw someone they knew in there, the tongues would wag and you’d hear the cluck-clucking from miles away.

    Maybe their customers sneak in the back door.

  4. Why everybody is raising the same point of the number of payday loan providers. I think that if they are more in number than Starbucks and McDonalds combined, then it means that the people there are rerally intrested in them. No lender will open a shop and will sit ideal if customers doesn’t turn up. So it means that the customers are really intrested in this scheme. There are many reasons why they are happy. At least they are getting their demand meet without begging to others.