It has been reported that payday lenders in Arizona are closing shop in advance of a new law banning their sky-high interest rates.

The Arizona Republic has reported that the expiration on Thursday of a 10-year-old state law that allowed payday lenders to charge interest rates as high as 460 percent annually is effectively ending the industry in the state.

Lee Miller, a spokesman for Arizona Consumer Financial Services, a trade group that represents payday lenders, told the newspaper, "What you are going to see is the smaller operators with one, two or three stores will close."

He further added, "The large companies are looking around and trying to find new products to meet the credit needs of Arizona consumers," including auto-title loans, which can still offer returns of more than 200 percent under Arizona law.

Check 'n Go, one of the state's largest lenders, began shutting down stores in early June with plans for all outlets to be closed by summer's end.

It was also noted by the report that the action represents a growing trend across the country, with several U. S. states banning payday lending operations. (With Inputs from Agencies)