Predatory lending is a problem in Arizona. That’s the finding of the Southwest Center for Economic Integrity and a statewide consumer protection agency in a report released Tuesday.
Arizona’s Consumer Financial Protection Bureau analyzed close to 10,000 predatory lending complaints and found 91 percent involved excessive debt-collection, bank account closures, andor long-term debt.
Investigators found 15 of the more than 600 payday lenders reported accounted for more than half of the complaints.
The report said the biggest offenders are doing business under names like CashNetUSA, NetCredit and Check 'n Go.
Payday lending is illegal in Arizona, but findings by the report noted loopholes in Arizona laws that make it possible for companies to lend money without verifying income.
Among the recommendations is a proposed federal rule forcing lenders to qualify borrowers in advance.