With the support of the Kellogg Foundation, the Southwest Rural Policy Network has been part of a coalition effort led by the Southwest Center for Economic Integrity (SCEI) to outlaw predatory lending practices in Arizona. This project documents and reflects upon that work with contributions from key partners and stakeholders.

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Pay Day Loans are small cash advances secured by a personal check held for future deposit or electronic withdrawal from a customer’s bank account. These loans of $50-$500 are due in full on the borrower’s next pay day or within 14 days. If the customer is unable to repay the loan within two weeks, most companies allow for the loan to be extended, or rolled over, by paying the interest on the loan. Customers are charged fees between $15 and $17.65 per $100 borrowed. The APR rate on pay day loans typically falls within a range of 390% to 500%.