A payday loan company is leaving Arizona, making it the second chain to leave the state after the industry lost its power to issue cash advances.

Advance America is closing its 47 locations in the state, including nine in the East Valley. This follows a June announcement that Check ‘n Go is also closing here. A recent phone book listing showed nine East Valley locations.

The East Valley was home to 110 payday loan shops in June, just before a law came into force on July 1 banning the then-thriving industry.

Proponents and opponents of payday loans had agreed that many stores would close under the new law, but an unknown number would switch to check cashing, auto loans or other financial services. Both companies attributed the law to their departure.

Mesa had the highest concentration in the East Valley, with 63 operating in June. The city has long fought to deter or ban stores due to their high concentration. The city still doesn’t welcome more empty stores in tough economic times, but Mayor Scott Smith noted that voters in 2008 repealed the industry’s ability to operate.

“You never like it when there are empty storefronts, but I think the citizens of Arizona said that if they had a choice between payday loan stores or empty storefronts, they would choose empty storefronts “Smith said.

Mesa doesn’t know how many more would close, move or convert to related financial services, he said.

Advance America is closing another 55 stores in Washington and Colorado, which the company said was based on new restrictions in those states.

The South Carolina-based company said its Arizona locations generated $3.7 million in revenue and $1.5 million in profit in the first three months of the year. When stores close in August, 100 employees will lose their jobs and customers who liked the loans will have to find other options, spokesman Jamie Fulmer said.

“Now you’re forcing consumers to turn to unregulated, more expensive alternatives,” Fulmer said.

Consumer advocates fought against payday loans because the annual interest rate was as high as 460%. The industry said its loans were popular and convenient ways for customers to access cash.

Arizona Attorney General Terry Goddard said he was monitoring stores for illegal lending as they sometimes defied new restrictions in other states. The bureau has not yet been able to say whether any violations have occurred, spokeswoman Molly Edwards said, because complaints are confidential.

Goddard said in a statement Friday that the departure “shows that the repeal law is working.”

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The Associated Press

contributed to this report.