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Arizona Senate President: High Interest Consumer Loan Bill Will Not Move Forward

Lenders will not be given the chance to lend money to Arizonans at an effective rate of 164 percent a year.

Senate president Steve Yarbrough explains why.

"It does not appear to me to have sufficient votes to be successful and so it will not move forward," Yarbrough said.

The death of the bill means that, with one key exception, lenders can charge no more than 36 percent annual interest.

That exception is for title loans where borrowers pledge their vehicles as collateral. These carry annual interest rates in excess of 200 percent.

Lawmakers supporting the legislation had billed it as an alternative for people whose credit is not good enough to borrow from more traditional sources.