The Payson Roundup joins the growing list of newspapers across the state to endorse “NO” on 200:

Prop. 200: Payday loan reforms

This one’s easy: It’s a crocodile dressed up like a gondola.

Supposedly, Proposition 200 will impose “reforms” on the predatory payday loan industry.

And on the face of it, the various restrictions sound reasonable enough, with electronic debiting, limits on some fees, payment plans and licensing of the businesses involved.

But here’s the catch – in return for the modest “reforms” the payday loan industry gets permanent licenses. The current system essentially goes out of business on July 1, 2010.

And good riddance.

These predatory businesses finagled an exemption from the state’s usury laws – which limit annual interest rates to a maximum of 36 percent annually. Many of these operations charge interest rates that work out to more like 400 percent annually. They offer desperate borrowers a quick fix – and a long addiction.

We do see a need for short-term loans in low-income neighborhoods shut out by the conventional credit markets. But the payday loan industry needs real reform – not this wink and a pat on the head so they can go back to ripping off their customers.

We urge a “no” vote on Proposition 200.