Due to the ingenuousness payday loan lending policy, number of States has put restriction on the interest rate. Still many states do not agree with the usury payday loans laws. It is for the same reason that 18 states have put lot of restriction in supplying payday loans. APR of 36 percent is included only. These states include Alabama, Alaska, Arizona, Connecticut, Georgia, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, North Dakota, Pennsylvania, Rhode Island, Texas, Vermont, Virginia and West Virginia. On the other hand there are 9 states that have no caps on annual interest rates for payday loans. In these states, payday loan companies can charge any APR and any amount of fees. These states are Delaware, Idaho, Illinois, Indiana, New Hampshire, New Mexico, Oregon, South Dakota, and Wisconsin.

Some of the states as well as the District of Columbia have created special legal laws for the loan sharks in order to regulate proper same day payday loans. These 23 states need to have special license for the same. Their company needs to be registered by the states government. Moreover the license needs to be renewed at regular interval of time. Cancellation of license means the payday loan lenders cannot give payday loans. Not only this, in some states there be certain amount of loan stores in a particular area. On the other hand in some states the loan stores cannot shift from one location to the other. This hinders the payday loans business of the other state. Scales stated in the meeting that business other than payday loans must be promoted.

"All I'm asking is that you give this moratorium life that we can right the wrongs of our community and make it more livable by having these different types of businesses that we know we can attract to the city," Scales said.


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