If you live in Arizona and are looking forward to taking out a payday loan, you may want to look elsewhere for financial assistance. Beginning July 1, payday lenders will be forced to follow banking procedure by capping their interest rates at 36 percent annually.
This is considerably lower than the rates many payday lenders charge, which is sometimes as high as 460 percent annually. With the cap in place, most payday lenders say they won’t be able to stay in business. Those that do say they will likely shift their focus to auto title loans — which can legally push rates to 204 percent annually (AZ Central).