All one needs to know about this self-serving initiative, the “Payday Loan Reform Act,” is that the payday-loan industry has poured an incredible amount of money into it — nearly $12 million as of the middle of September.

Payday lenders are doing this because they want to stay in the business of taking advantage of financially naive consumers or those who feel they don’t have options besides taking out loans that charge fees that equal 400 percent annual interest rates.

Voting “no” on Proposition 200 will give Arizonans a good chance to rid the state of these predatory lenders once and for all.

The licensing program that allows payday lenders to operate in Arizona is set to expire in 2010. Passage of Proposition 200 would eliminate the expiration date and allow payday shops to remain in Arizona indefinitely.

Supporters of Proposition 200 claim this initiative would fix payday loans in several ways.

For example, the proposition would lower the effective annual interest rate on a loan from more than 400 percent to 391 percent.

However, if the payday-lending law expires as scheduled, no consumer loans could exceed the state’s 36 percent usury cap.

The payday-loan industry touts itself as a financial savior for those who lack credit or need cash. However, many borrowers end up worse off financially after taking out a payday loan.

This legalized loan-sharking has been going on long enough. We urge voters to reject Proposition 200 and send a message that payday lenders are no longer welcome in Arizona.

Read the full endorsement here.