Former Arizona state attorney general Grant Woods is one of the more prominent state officials to come out in support of payday loans, recently telling Capitol Media Services that he felt the short-term lenders filled an important role, the Yuma Sun recently reported.
With all of the controversy surrounding the concept of short-term loans, Woods told the Sun that payday loan officials had worked appropriately with lawmakers to make a resolution that would satisfy them while helping consumers as well.
“These are two-week loans, not annual loans,”” said Woods. “With about 94 percent of borrowers paying off within that time frame.”
He added that he would be presenting a plan to state lawmakers proposing that borrowers who are unable to pay back their loans within two weeks would receive an extra 60 days to pay it back without incurring any extra fees or interest rates.
“I don’t know any industry, any business, any bank, anybody who will give you 60 days, no fee, no interest,” he added.
Despite Woods’ stumping in their favor, the state remains divided on payday loans. Last year voters rejected a motion created by payday lenders to repeal a law enacted in 2000 that would force them to close on June 30, 2010.
