Dear Friends,

Governor Brewer issued her State of the State address yesterday and the 2010 Legislative Session has begun.

Our goal is the same as it was when we defeated the payday lenders back in 2008:
The Sun Must Set on 400% interest rates on July 1, 2010 — just as current law prescribes.

However, some of our “representatives” in the Legislature, as well as the governor and some of her chief advisers, have not yet gotten the message!

In 2008, Arizona voters rejected the payday industry’s Proposition 200, which would have legalized 400%-interest payday loans forever.   Despite the industry’s $15 million campaign to pass the measure, the voters rejected their so-called “payday loan reform act” by a resounding 60% to 40% margin statewide, including defeating the measure in every county in the state.

But now the out-of-state payday lenders, with the help of some legislators and the governor, are back.  And they’re asking for the very same thing — a license to charge 400% interest to Arizona consumers for another ten years!

The payday lenders are counting on YOU to NOT speak up.  But we have other plans…

Let your lawmakers know: PAYDAY LOANS MUST GO!

On Friday, former Attorney General Grant Woods — who is Governor Brewer’s campaign Co-Chair and is working for the payday lenders to lobby against the public will — announced that he expects a payday loan extension bill to be filed THIS WEEK and that he is “confident the governor will sign it.” Story HERE.  Video HERE.

In stark contrast to his reputation as a consumer advocate, Grant Woods now claims that 400% interest rates are “okay” as long as there’s a database to track borrowers!

Well… a borrower database is a “smoke-and-mirrors reform,” just like the other provisions we expect to see in their bill.  It is meant to hide the fact that the payday lenders charge triple-digit interest rates and want to keep it that way.   Mandatory databases DO NOT stop the Debt Trap, as explained here.  

Nearly 1.3 million Arizonans already rejected window-dressing “reforms” in Prop 200.  They demanded an END to 400% interest rates.

Unfortunately, it is not just Grant Woods or Governor Brewer that missed the voters’ message:

In an Arizona Capitol Times article last month, “Lights Out on Payday Loans,” several prominent Republican legislators were quoted as possibly or definitely supporting the out-of-state payday loan industry in its efforts to keep 400% rates alive in Arizona.

Rep. Cecil Ash of Mesa said, “When you start telling people what they can’t do, I’m conflicted.”

Rep. Nancy Barto of Phoenix said, “I’m not so sure that letting a whole industry sunset because [the voters] don’t like the look of a building on the street corner is a good idea.”  Call Rep. Barto at (602) 926-5766 and inform her why YOU voted against Prop 200… something tells us it had more to do with their 400% interest rates than the look of their buildings!

Rep. Michele Reagan of Scottsdale, Chair of the House Commerce Committee and therefore very influential on this matter, said she supports allowing 400% payday lending to continue in Arizona because “they’re providing a service that people seem to enjoy.  It doesn’t seem like a rip-off to me.”  (We’re not kidding.)

If you’d like to call Rep. Reagan and explain to her your definition of a rip-off, you can reach her at (602) 926-5828.

Remind these lawmakers — and YOUR Senator and Representatives — that their constituents have spoken:

THE SUN MUST SET ON 400 PERCENT!
(To see election results by district and by county, click here.)

In the same Arizona Capitol Times article, you’ll also see several comments by majority party legislators who understand that the voters clearly want an END to legalized loan sharking.

These Republican lawmakers get it.  And we need to THANK THEM:

Rep. Doris Goodale of Kingman said “the high fees for the loans are unconscionable, and I will oppose them, even though it goes against [my] desire to limit government intervention in the marketplace.”

Rep. Frank Antenori of Tucson, a U.S. Army Veteran, said, “I’ve seen the disregard the industry has for the personal impact it has on people.”   (Active duty military and their dependents are now protected from abusive payday loans because of the Military Lending Act pushed by the Pentagon and passed by Congress in 2007.  Veterans, however, are not similarly protected by current law.

Rep. Bill Konopnicki of Safford said, quite correctly, “I think what the voters turned down was payday loans.  I don’t think they cared about the details.”

Contact these three legislative leaders today and tell them:
“THANK YOU FOR STANDING WITH THE VOTERS!”

Finally, write a letter to your local paper or the Arizona Republic, explaining why you feel the Sun Must Set on 400%.

Yuma resident Alice Redwine wrote this letter to the Yuma Sun on Sunday shaming Gov. Brewer for even considering giving the payday industry a new lease on life.  Like Alice has done, it is time for you to speak up and be heard!

The session is underway and your voice matters now more than ever.

The payday lenders are counting on being able to write a bill behind closed doors — and buy legislators’ votes — to extend their lifeline and maintain the status quo for another ten years.

WE are the only ones standing in their way…

Make sure your elected officials get the message.  LET THE SUN SET ON 400 PERCENT. THIS YEAR!

Thank you for engaging with us again in this critical battle to protect Arizona consumers.  As we learn more, we’ll let you know.

Sincerely,

David Higuera
Arizonans for Responsible Lending

~~~

PS:  Here’s a recap of who to contact TODAY:

Tell these lawmakers, who apparently want to give the payday lenders a new lease on life:   “The voters have spoken: The Sun Must Set on 400%!”

Rep. Cecil Ash, cash@azleg.gov, 602-926-3160

Rep. Nancy Barto, nbarto@azleg.gov, 602-926-5766

Rep. Michelle Reagan, mreagan@azleg.gov, 602-926-5828

Governor Jan Brewer: 1 (800) 253-0883

… or contact the Governor’s Communications Director Paul Senseman directly: psenseman@az.gov, (602) 542-1342

~~

Tell the following lawmakers, “THANK YOU FOR RESPECTING THE WILL OF THE VOTERS!  We’re counting on you to help keep the 2010 Sunset in place.”

Rep. Doris Goodale, dgoodale@azleg.gov, 602-926-5408

Rep. Frank Antenori, fantenori@azleg.gov, 602-926-5683

Rep. Bill Konopnicki, bkonopnicki@azleg.gov, 602-926-5409

*

Paid for by Arizonans for Responsible Lending

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.NoMoreLoanSharks.com

I read the article in the Yuma Sun regarding Gov. Brewer’s willingness to let the payday loan industry remain in business. Her views seem to indicate that this is an acceptable industry despite how the public feels.

I do not believe Gov. Brewer when she stated her view on the payday loan industry was not affected by the fact that close advisers to her re-election campaign are on the payroll of the lenders. I am very disappointed in her biased actions.

She also mentioned that she would probably never need or use this industry. Of course she would never need this industry to finance her needs because she makes very good money. These companies are used by desperate people who have no credit or other choice.

How can Gov. Brewer reason that these greedy companies should stay in business? This shows she does not care about the people forced to use these companies. So many people of Arizona have lost so much. Gov. Brewer, don’t let your voters be used and cheated again and again.

Keep in mind the voters of Arizona do not want the payday loan industry here and they voted against the payday lenders.

When asked how she voted on the industry-financed initiative last year, she responded “I don’t recall.” It sounds like she has a selective memory problem.

All the responses from her regarding the payday lenders was favorable to them. She doesn’t seem to care what the voters want. As governor, she should be listening to the voters.

The Attorney General’s Office filed suit against a major payday lender in Arizona accusing the firm of collection practices designed to defraud hundreds of borrowers, especially those living in rural areas. Two of these companies are located in Yuma (taken from the Dec. 5 Yuma Sun).

I will not vote for Gov. Brewer and I doubt she will be re-elected governor of Arizona.

Please, voters of Arizona, write your elected officials and let your views be known. Gov. Brewer does not have the best interest of the voters at heart. Only her interests count with her.

ALICE I. REDWINE
Yuma

To see this post at the Yuma Sun & add your comments, click here.

KVOA Channel 4 reports:

For the payday lending industry, it’s a last ditch push to help them survive in Arizona past July. That’s when new rules go into effect that could force many of them out of business.

Since Prop 200 failed in 2008, payday lenders will no longer be able to offer loans at the current APRs around 400 percent. In fact, beginning July 1st, loans will be capped at a 36 percent APR.

SEE VIDEO HERE.

So, the payday loan industry hired Grant Woods, former Arizona Attorney General and the governor’s campaign co-chair.

Even though he voted ‘No’ on Prop 200, they hired him anyway. He says they wanted him to help them draft a list of reforms to include in a bill. They wanted reforms that voters like him could live with.

He says some of the reforms are similar to ones we saw in Prop 200 and some are new.

“The most significant one I think is the comprehensive database,” Woods said.

He says it’s a database that would track borrowers to prevent them from taking out more than $500 at any given time from any lender. Right now, that’s not permitted but he says borrowers do it anyway. He says this is a way to ‘police’ that activity.

Other reforms would include no more rollovers, so borrowers wouldn’t continue to accumulate interest after the initial interest fee.  As for the interest rates, they would go down slightly but would stay close to 400 percent.

Woods says in this economy, we can’t let more people lose their jobs. He says the industry just needs reformed.

Lobbyists are currently looking for a state lawmaker to sponsor a bill with the new proposed reforms. He says that’s expected to happen next week.

David Higuera, political director for Arizonans for Responsible Lending, says those reforms have not worked in other states and have not helped stop the predatory lenders and the borrowers who get trapped in debt.

He says they worked hard to make sure voters shot down Prop 200 and now he says they’ll work hard to fight it again.

“Our coalition is staying engaged and we’re going to fight the bill as soon as it hits a committee,” Higuera said.

Woods says he hasn’t spoken to Governor Brewer about this and doesn’t plan too. He also says he doesn’t believe his relationship with her will persuade her vote. However, he’s confident she will support the reforms.

“I’m hopeful it will pass the legislature with bipartisan support and if it does then I’m confident the governor will sign it,” Woods said.

The legislature is back in session Monday.

To view this story online, click here.