PRESS RELEASE – For Immediate Release
September 4, 2008

Contact
Caitlin Sherman, Media Relations, (602) 312-1100

Arizona Ecumenical Council Votes Unanimously to Condemn
Payday Lending and Urge Defeat of Proposition 200

Urges all Christians to heed God’s call to care for the poor and promote laws
that do not take advantage of the poor

PHOENIX – In a unanimous decision yesterday, the Executive Board of the Arizona Ecumenical Council adopted a resolution in opposition to Proposition 200, which if passed in November would allow triple-digit interest rates in Arizona indefinitely.

The Arizona Ecumenical Council represents 18 Christian denominations and various organizations throughout the state working for unity, faith, and a life of service to others.  The combined membership of AEC-affiliated churches and organizations is 1.5 million Arizonans.

“The issue of usury is clear in the Bible and should be clear to all citizens.  In both the Old Testament and the New Testament, God condemns usury in no uncertain terms,” stated Arizona Ecumenical Council executive director, Rev. Jan Flaaten.  “With Proposition 200, the payday lenders are trying to get away with usurious interest rates in Arizona forever.  As people of faith, we are called upon to speak out against such injustices.”

“We have two major problems with Proposition 200,” continued Rev. Flaaten.  “First, the writers of Prop 200, the payday lenders themselves, use deception to hide the true intent of their initiative.  Their aim is not to reform payday loans but to perpetuate their existence – and their egregious interest rates – forever.  Second, 400 percent interest payday lending takes advantage of those in the community who are most vulnerable, those facing economic hardship.  That is something we’ll oppose every time.”

The Arizona Ecumenical Council will work to educate member churches and organizations across the state about the truth regarding Proposition 200, and urge all voters to vote NO this November.  For more information on the AEC, visit www.aecunity.net.

Proposition 200 would forever enable payday lenders to charge 391 percent interest on two-week loans.  This exceedingly high interest rate – more than ten times the state’s usury cap of 36 percent – is one of the predominant reasons that payday loans trap borrowers in an endless cycle of debt.  The payday loan debt trap is evidenced by consumer and state regulator data from across the country.

On average, the typical payday loan borrower takes out nine payday loan transactions from a single lender per year, paying back more in interest than he or she ever borrowed initially in principal (www.responsiblelending.org/issues/payday).  The average payday loan borrower will pay back $800 on a $300 loan, and nearly $1,300 on a $500 loan.

For more information about Proposition 200, visit www.200isNoReform.com.

The complete Arizona Ecumenical Council Resolution follows:

Arizona Ecumenical Council
Resolution regarding 2008 Ballot Initiative, Prop 200
www.aecunity.net (602) 468-3818

Whereas the Bible has spoken clearly about loaning money with interest as in Exodus 22:25-27, Leviticus 25:35-37, Deuteronomy 23:19, and Psalm 15:5 and

Whereas the State of Arizona has already made it a law that consumer loans cannot  exceed 36% APR (Annual Percentage Rate), and

Whereas Payday Loans primarily serve people who are financially insecure, and

Whereas the Payday Loan industry secured an exemption for themselves to allow 410% APR until the year 2010, and

Whereas the 2008 Ballot Initiative numbered 200 entitled “Payday Loan Reform Act” will not reform this practice because the initiative will lower the interest rate only to 391%APR and it will remove the sunset clause so the industry can continue to do business without time limits, and

Whereas the churches of the Arizona Ecumenical Council encourage all Christians to remember the care and concern God has expressed for the poor, and

Whereas our church leaders speak out against economic injustice, and

Whereas we wish to promote laws that do not take advantage of the poor,

Therefore, be it resolved that the Arizona Ecumenical Council encourages its member churches and all Arizona registered voters to vote NO on Proposition 200.

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Paid for by Arizonans for Responsible Lending, No on 200
Senator Debbie McCune Davis, Chair

Major Funding by United Food and Commercial Workers Local 99, Phoenix AZ, Center for Responsible Lending, Durham NC, Service Employees International Union, Washington DC, and Strategic Issues Management Group, Tucson AZ; Additional Support from Arizona AARP

www.200isNoReform.com * (602) 312-1100