Dear Supporters:

This Monday, March 2nd, we must marshal all resources to come out strongly against a predatory consumer lending bill, HB2608, when it will be heard in the House Banking and Insurance Committee.

Please contact the members of

House Banking and Insurance Committee — TODAY!

Tell them to Vote NO on HB2608!

Here’s why we should stop HB 2608 – NOW:

• HB2608 – the “Small Installment Loan Act” would legalize triple-digit APR interest rates to Arizona consumers for small consumer installment loans, exempting another industry from the state’s 36% usury cap on consumer loans.

• Under this act, for example, a loan of $750 paid off in five months would carry a 195% APR. Experience of other states with similar products show that loans are renewed multiple times, carrying excessive fees with each renewal.  Didn’t we just reject triple-digit interest rates and predatory loans that keep people trapped in debt?

• HB 2608 ignores the voters’ mandate. When Arizona voters went to the polls in November, they clearly said No, by a 60%-40% margin, to triple digit interest rates, special deals under the state’s usury caps, and fake “reforms” in the industry-sponsored Proposition 200.   HB 2608 ignores the voters’ mandate by legalizing another form of high cost consumer lending that will inevitably lead to the cycle of long -term, inescapable debt for working Arizonans.

• Arizona consumers cannot afford to replace one predatory loan product with another.  Our state already has consumer lenders serving this market offering small installment loans in AZ at the current 36% rate cap or less.

Contact the House Banking and Insurance Committee Members TODAY  –

Tell them to Vote NO on HB2608!

Tell committee members that Arizona will not accept another predatory lender getting a special deal to do business in the state. (NOTE: Use these talking points for your letters and emails.)

• Nancy McLain (Chair of Banking and Insurance Cmte, District 3), nmclain@azleg.gov, phone: 926-5051, fax: 417-3003

• Cecil P. Ash (District 18), cash@azleg.gov, phone: 926-3160, fax: 417-3151

• David Bradley (District 28), dbradley@azleg.gov, phone: 926-3300, fax: 417-3028

• Cloves C. Campbell, Jr.(District 16); clcampbell@azleg.gov, phone: 926-3042, fax: 417-3117

• Robert Meza (District 14), rmeza@azleg.gov, phone: 926-3425, fax: 417-3114

• Doug Quelland (Vice Chair of Banking and Insurance Cmte, District 10), dquelland@azleg.gov, phone: 926-3024, fax: 417-3110

• Carl Seel (District 6), cseel@azleg.gov, phone: 926-3018, fax: 417-3006
• Andrew M. Tobin (District 1), atobin@azleg.gov, phone: 926-5172, fax: 417-3085

For the Committee agenda, click here.  To read the text of the proposed legislation, click here.  For other information about HB2608, click here.

Thank you for your continued support,

Kelly Griffith
Outreach Director
Arizonans for Responsible Lending
www.NoMoreLoanSharks.com

Dear Supporters:

This Monday, March 2nd, we must marshal all resources to come out strongly against a predatory consumer lending bill, HB2608, when it will be heard in the House Banking and Insurance Committee.

Please contact the members of

House Banking and Insurance Committee — TODAY!

Tell them to Vote NO on HB2608!

Here’s why we should stop HB 2608 – NOW:

• HB2608 – the “Small Installment Loan Act” would legalize triple-digit APR interest rates to Arizona consumers for small consumer installment loans, exempting another industry from the state’s 36% usury cap on consumer loans.

• For example, under this act, a loan of $750 paid off in five months would cost 435% APR interest! Didn’t we just have this debate?

• HB 2608 ignores the voters’ mandate. When Arizona voters went to the polls in November, they clearly said No, by a 60%-40% margin, to triple digit interest rates, special deals under the state’s usury caps, and fake “reforms” in the industry-sponsored Proposition 200.   HB 2608 ignores the voters’ mandate by legalizing another form of high cost consumer lending that will inevitably lead to the cycle of long -term, inescapable debt for working Arizonans.

• Arizona consumers cannot afford to replace one predatory loan product with another.  Our state already has consumer lenders serving this market offering small installment loans in AZ at the current 36% rate cap or less.

Contact the House Banking and Insurance Committee Members TODAY  –

Tell them to Vote NO on HB2608!

Tell committee members that Arizona will not accept another predatory lender getting a special deal to do business in the state. (NOTE: Use these talking points for your letters and emails.)

• Nancy McLain (Chair of Banking and Insurance Cmte, District 3), nmclain@azleg.gov, phone: 926-5051, fax: 417-3003

• Cecil P. Ash (District 18), cash@azleg.gov, phone: 926-3160, fax: 417-3151

• David Bradley (District 28), dbradley@azleg.gov, phone: 926-3300, fax: 417-3028

• Cloves C. Campbell, Jr.(District 16); clcampbell@azleg.gov, phone: 926-3042, fax: 417-3117

• Robert Meza (District 14), rmeza@azleg.gov, phone: 926-3425, fax: 417-3114

• Doug Quelland (Vice Chair of Banking and Insurance Cmte, District 10), dquelland@azleg.gov, phone: 926-3024, fax: 417-3110

• Carl Seel (District 6), cseel@azleg.gov, phone: 926-3018, fax: 417-3006
• Andrew M. Tobin (District 1), atobin@azleg.gov, phone: 926-5172, fax: 417-3085

For the Committee agenda, click here.  To read the text of the proposed legislation, click here.  For other information about HB2608, click here.

Thank you for your continued support,

Kelly Griffith
Outreach Director
Arizonans for Responsible Lending
www.NoMoreLoanSharks.com

Respect the Voters’ Will and Let the Sun Set on Payday Lending

In November’s election, Arizona voters beat back the payday lenders’ Proposition 200 in every county in the state and won a resounding and definitive 60-40 victory!

Working together, our statewide coalition of over 200 organizations, elected officials from both political parties, faith communities, neighborhood leaders, the business community, consumer advocates, credit unions and extraordinary individuals from all walks of life, fought back against $15 million in industry propaganda and resoundingly rejected the payday lenders’ initiative attempt to repeal the 2010 sunset for 400% interest rates.

Our new website, www.NoMoreLoanSharks.com, recaps this historic effort, including a breakdown of voting results by legislative district.

Thank you again for all that you did.  We could not have done it without you!

But believe it or not, the fight is not over.  We need you now – again!

In the next two years, the predatory industry will pull out all the stops to try to circumvent the voters’ will and protect their multi-billion dollar lending scheme in Arizona.  We expect a heavy lobbying push on both sides of the aisle by an industry dead set on removing the 2010 sunset date in Arizona law and continuing their predatory 400% interest rates.

We need your continued support. We must ensure that the interest rate cap of 36 percent applies to all lenders again, as scheduled, on July 1, 2010.  We must see this through until the 36 percent cap is back in effect!

To move this fight forward, visit our new website www.nomoreloansharks.com with updates and tools to help you contact your legislators and make sure they heed the will of the voters.  And make a donation of $25, $100, or whatever you can give, today.

On the site, you’ll find information about the City of Mesa standing up to Russell Pearce when he threatened to introduce legislation that would repeal the 2010 sunset.  You’ll see what’s happening in other states where this battle is also being waged today.  You’ll see plenty of ways to get involved again!

We must continue to make it known that Arizona will not tolerate any more special deals for loan sharks!

Thank you again for all that you do,

Kelly Griffith
Outreach Director
Arizonans for Responsible Lending
(520) 250-4416
www.NoMoreLoanSharks.com

MSNBC recently picked up this story, more evidence of payday lenders unethical and often illegal business practices:

By OWEN LEI / KING 5 News Seattle

FEDERAL WAY, Wash. – A local payday loan company offered to cough up $2.5 million in settlement money after thousands of clients sued over defamation and abusive collection practices.

Watch the report