The AP reports:

The payday loan industry’s efforts to win legislative approval to keep operating in Arizona are over now that a legislative committee has canceled a planned hearing amid a lack of support, the industry’s chief lobbyist said Tuesday.

“Nobody wants to talk about the lending business anymore,” lobbyist Lee Miller said.

Payday lenders charge fees that amount to interest rates above 400 percent on an annual basis, but the provision of a 10-year-old state law allowing them to operate expires June 30.

After two failed attempts in the House and Senate this year, the industry’s last-ditch effort to continue operating in a modified form was scheduled for a hearing before the Senate Finance Committee on Wednesday.

But the bill was abruptly removed from the agenda Tuesday, and the committee’s chairman, Sen. Jack Harper, said “they never had the votes.”

The Arizona Legislature’s regular session is in its final weeks, and Miller said there’s not enough time to try other options.

Part of the industry’s difficulty at the Legislature stemmed from lawmakers’ reluctance to second-guess voters, who in 2008 soundly rejected an industry-backed ballot measure to remove the June 30 expiration.

“This is a big victory for consumers, and this is a testament to the fact that it’s our democracy,” said David Higuera, political director for Arizonans for Responsible Lending, which organized a campaign opposing the measure. “When people get involved, legislators listen.”

There are about 650 payday loan stores in Arizona. Executives have said some will stay open after June 30 and try make a profit from other lines of business, including auto title loans, check cashing and prepaid debit cards.

The industry employs about 2,500 people in Arizona, and executives have said many will lose their jobs if payday loans aren’t reauthorized.

Payday lending opponents say the industry preys on poor people in desperate situations. They say the industry depends on trapping borrowers in a cycle of debt where they continually renew their loan because they can’t afford to pay it off while still covering their expenses.

Industry proponents say the market has shown a need for short-term, small-dollar loans that aren’t generally available from banks or credit unions. They say the industry supports low-income families that otherwise wouldn’t have access to credit in an emergency.

Supporters say taking a payday loan is cheaper than paying a late fee or bouncing a check to pay for emergency costs.

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