PRESS RELEASE – For Immediate Release
October 30, 2008

CONTACT:
Melissa Hodgdon, No on 200, (978) 476-9370

WATCH FOR MORE DECEPTIVE ADS BY DESPERATE PAYDAY LOAN INDUSTRY

Payday industry asks for even more money from payday loan companies across the country to support
deceptive ads promoting Proposition 200 in Arizona

PHOENIX – According an article in Tuesday’s RTO Online, two large payday loan trade groups, Financial Services Centers of America (FiSCA) and Community Financial Services Association (CFSA), are asking payday loan companies from across the country for more money for their ballot initiative efforts in Arizona and Ohio.

Both states’ ballots have initiatives that will ask voters to decide whether the payday industry can continue charging triple-digit interest rates, or should have to cap their rates in the 28 to 36 percent range, as other lenders must.

If the industry-funded Prop 200 in Arizona fails, payday lenders will have to cap their rates at 36 percent, just like every other consumer lender in the state – much less than the 391 percent written into the initiative.  The Ohio battle comes down to 391-percent interest rates being pushed by the industry versus a 28 percent cap.

In both cases, the industry will be left with an interesting decision should they lose at the ballot box: (a) stay in the state and do business at reasonable interest rates, which they are not eager to acknowledge can be done; or (b) close up shop in Arizona and Ohio in order to not undermine their argument in other states that they cannot do business at 36 percent interest rates.

According to the RTO Online story, Joseph Coleman, Chairman of FiSCA, sees Arizona and Ohio as make or break states for the industry:

“What happens on Election Day in Ohio and Arizona will unquestionably impact the future of the payday industry,” FiSCA Chairman Coleman said in a recent letter to members. “A defeat in either or both states potentially could have a negative ripple effect on other states or even at the federal level. Whether or not you [member lenders] conduct business in Ohio and/or Arizona, you have much to gain or lose in the upcoming elections.”

Read the story here:
Ohio, Arizona Payday Loan Ballot Initiatives Have Nationwide Implications

http://rtoonline.com/Content/Article/oct08/Payday-loan-ballot-initiative-ohio-arizona-102808.asp

“Considering that they are protecting their special right to charge 400 percent interest rates, it is not surprising they will spend tens of millions to try to fool the voters,” stated Carlos Duarte of Mi Familia Vota, a key group in Arizona campaigning vigorously against Prop 200.

The payday industry has poured more than $14.3 million into its campaign in Arizona so far, on mailings and ads that are meant to mislead Arizona voters.

Accelerated Spending – More Deceitful Ads

According to finance reports available on the Secretary of State’s website, the payday industry has directed $5,251,644 to the Yes on 200 campaign just in the past two months alone, mostly for mail and television ads.

Their latest television ad attempts to confuse voters into voting ‘yes’ when they mean ‘no.’  It is a full-throttle attack on payday lenders themselves, and makes it seem that voting yes would reign in payday lenders, not let them stay indefinitely in our communities.

KPHO Channel 5 in Phoenix recently showed the ad to people on the street, all of whom thought it was paid for by an opposition group; they were shocked to learn it was the payday industry itself that funded the ad.

View the news clip here: http://www.kpho.com/video/17821368/index.html

Now the payday lenders have added deceptive ads on the Internet as well.  By using Google AdWords, the Yes on 200 campaign paid to link the name “Debbie McCune Davis,” Chair of the No on 200 campaign, to their own website to make it look as if she were on their side.

The Yes on 200 Campaign also has bought Ken Clark’s name in their Google advertising as well as “No on 200.”

“I knew the Yes on 200 campaign was dishonest,” said Senator McCune Davis.  “But this really crosses the line. I guess they felt they had to use these dirty tricks since voters would never pass Prop 200 if they knew the truth.”

Another deceptive tactic the payday industry is employing in Arizona is robo-calls, using, for example, former Arizona Attorney General Jack LaSota as spokesman.  Nowhere in his pre-recorded message to voters does he say that he is a lobbyist for the payday loan industry.  He certainly does not say that he has been paid $10,000 since mid-August by the Yes on 200 campaign.

“We challenge the payday lenders to tell Arizona voters the truth,” stated Sen. McCune Davis.  “A ‘yes’ vote authorizes payday lenders to stay in Arizona beyond 2010, charging 391 percent interest on the typical 14-day loan.  A ‘no’ vote would force them to substantially cut their rates to 36 percent in 2010 in order to stay in business.”

The payday industry apparently thinks it can buy Arizonans’ votes.  It already has spent more than $14 per vote to try to reach the million votes it needs for Prop 200 to succeed on November 4^th.

“Arizona voters need to send a message to the payday loan sharks: ‘We see through your propaganda and lies. Our votes cannot be bought!’” stated No on 200 spokesperson Melissa Hodgdon.

On Election Day, Arizonans can stand up to the unscrupulous payday loan industry by voting “NO” on Proposition 200.

For more information:  www.200isnoreform.com/liarflyers

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Paid for by Arizonans for Responsible Lending
No on 200
Major Funding by AARP Arizona
Center for Responsible Lending, N.C., SEIU, Washington, and SIMG, Tucson
Additional Support from Arizona State Credit Union, UFCW Local 99
The Arizona Credit Union League, and Mi Familia Vota

www.200isNoReform.com