For Immediate Release
June 3, 2009

Contact:  David Higuera
Arizonans for Responsible Lending (520) 907-2080

Bishop to speak about Arizona’s sound rejection of 400 percent interest rates, need for Congress to protect consumers from triple-digit predatory lending

TUCSON – Bishop Minerva Carcaño of the Desert Southwest Conference of the United Methodist Church has been invited to present tomorrow morning to a Congressional Staff Briefing on the issue of payday lending.

Bishop Carcaño, who also serves as president of the Arizona Ecumenical Council’s executive board, was a critical community leader in our successful effort to defeat the payday lenders’ ballot initiative last November.

The Briefing, titled “Springing the Debt Trap“ is open to the public:
Thursday, June 4, 2009
8:30 am – 10:00 am  EST
2203 Rayburn House Office Building

With Prop 200, the payday industry attempted to write 400 percent interest rates into state law and remove the provision that would force them to drop their interest rates to 36 percent beginning next year.   But Arizonans rejected the industry’s measure at the polls, with 60% voting to reinforce the 36 percent interest cap.  Voters in every congressional district in the state rejected 400 percent interest rates on consumer loans.

Reached for comment today, Bishop Carcaño said, “The issue of payday loans is an economic justice issue, a moral issue.  Arizona certainly laid the groundwork last year.  Now the federal government must build upon that to protect all consumers.”   Added Carcaño, “I am very proud of Arizonans, who made the right choice, and I am eager to share our experience with Members of Congress so they can make the right choice, too.”

Sen. Debbie McCune Davis, Co-Chair of Arizonans for Responsible Lending, stated, “Arizonans made our verdict clear.  We do not believe any lender should be allowed to charge triple digit interest rates. Now that Congress is looking at this issue, I encourage Arizonans to make sure our Congressional Delegation hears from all of us:  ‘Support a 36 percent cap!’”

The Congressional Staff Briefing is being co-hosted by Rep. Maxine Waters and Rep. Jackie Speier, who both serve on the House Financial Services Committee.  Rep. Waters is the Chair of the Subcommittee on Housing and Community Opportunity.

Other scheduled presenters include:
Michael D. Calhoun, President, Center for Responsible Lending;
Alan Fisher, Executive Director, California Reinvestment Coalition;
Dennis Campa, Director, Department of Community Initiatives, City of San Antonio;
Rita Hayes, CEO, Mount Sinai Credit Union (now Faith Community United), Cleveland, Ohio; and
Hilary Shelton, Vice President and Director, NAACP Washington Bureau

The briefing is sponsored by: the Black Leadership Forum, the Center for Responsible Lending, Consumer Federation of America, the Inter-religious Working Group on Domestic Human Needs, the Leadership Conference on Civil Rights, the NAACP, and the National Black Caucus of Local Elected Officials.

For a flier with all briefing details, click here.  Accompanying reserch report here.

###

NOTE TO ALL SUPPORTERS: To encourage Arizona’s Members of Congress to get on board with a 36% cap for all lenders, contact them directly:

Call Sen. McCain – (602) 952-2410
Call Sen. Kyl — (602) 840-1891

Call Rep. Ann Kirkpatrick, AZ-1 — (928) 445-3434
Call Rep. Trent Franks, AZ-2 — (623) 776-7911
Call Rep. John Shadegg, AZ-3 –  (602) 263-5300
Call Rep. Ed Pastor, AZ-4 — (602) 256-0551
Call Rep. Harry Mitchell, AZ-5 — (480) 946-2411
Call Rep. Jeff Flake, AZ-6 — (480) 833-0092
Call Rep. Raul Grijalva, AZ-7 — (520) 622-6788
Call Rep. Gabrielle Giffords, AZ-8 — (520) 881-3588

NOTE: Rep. Speier (CA-12) is pushing for a strict cap on interest rates.  Her bill, H.R. 1608 — Protecting Consumers from Unreasonable Credit Rates Act of 2009 — would cap ALL fees and interest rates on ALL consumer loan products at 36 percent, thus ending predatory payday lending as it currently exists.  Rep. Grijalva (AZ-7) is a co-sponsor.

The companion bill in the Senate is sponsored by Sen. Dick Durbin. It is S. 500.