Legal Question in Banking Law in Arizona

I have an Arizona Title Loan from Allied Cash Advance recently. The principle amount is $920.00 with an APR of 180% (15%per month) so My finance charge is around $136.10. According to the contract I am to physically appear in their office to make the payment. The question I have is this: is it legal for them to redo the contract every time I make the finance charge payment. By doing this, unless I pay in full, means that I will be paying the finance charge only with nothing applied towards the principle. I am a long haul truck driver and was told that my spouse could not make the payment since she is not on the contract and must sign a new contract every month. Would a power of Attorney enable my spouse to sign the new contract each month and is it legal for the title loan company to renew the contract monthly or is this a legal loan shark method.


Asked on 3/29/12, 11:04 am

1 Answer from Attorneys
Jeremy Claridge Byrne & Benesch

The best advice is steer clear of those places if at all possible. A properly prepared power of attorney will allow your wife to sign everything on your behalf. I can't attest to the practices of the lender but I can say that the law favors one's ability to contract. Good luck.

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Answered on 3/29/12, 11:41 am


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