“If you don’t have enough income to meet your basic cash flow needs, whatever they are … what are your chances of being able to repay that loan?” ” she asked.

“It pushes people into bankruptcy, into checking accounts closed, into addictions,” Griffith said. “The consequences are therefore enormous. “

Goodman, however, said eliminating Arizona title lenders would not solve the problem. He said that would only push people to the internet and offshore lenders, who have no physical presence in Arizona and whose practices are not overseen by state regulators.

But Griffith said she thinks there are other solutions. She said some customers likely have access to credit cards, which they can use to bill for things like car repairs and tires in order to get to work to keep earning money. Interest rates on credit cards are lower than those of a securities lender, she said.

And for those who don’t have such options, Griffith said there are charities that may be able to help.

Goodman said the 204% figure may be misleading.

This number is based on the fact that the industry is allowed to charge 17% interest per month for loans of $ 500 or less.

But he said the law has tiered limits: 15% for those between $ 501 and $ 2,500, 13% for those between $ 2,501 and $ 5,000 and 10% for higher loans. Competition among lenders has resulted in bid rates lower than that, he said.