Last year Arizona voters rejected, by an overwhelming majority, a ballot initiative sponsored by payday lenders that would have allowed them to continue to do business in Arizona beyond June 30, 2010.
... industry lobbyists pushed through a special law in 2000 allowing them to charge fees that far exceed the cap for what are called "deferred presentment transactions" of up to $500.
In essence, someone who needs money writes out a check for that amount plus the fee, which can be up to $17.85 per $100 valued. The company agrees not to cash the check for up to two weeks.
That computes out to an annual percentage interest of more than 450 percent.