The Verdict is Clear: The Sun Must Set on 400%
PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT:
David Higuera, Arizonans for Responsible Lending
(520) 907-2080, david@nomoreloansharks.com
Arizonans Speak Up Loud and Clear, Again: The Sun Must Set on 400%
Senate Majority Leader joins community advocates, fellow Republican and Democratic lawmakers in calling for an END to triple-digit interest rates
PHOENIX – Today, a bipartisan group of lawmakers from both the House and the Senate joined community advocates in denouncing the attempt by one prominent legislator to throw the payday lenders a lifeline.
Rep. Andrew Tobin has introduced HB 2161, a bill that would repeal the July 1, 2010 payday loan sunset date and perpetuate 400% interest rate payday loans in Arizona.
Sen. Majority Leader Chuck Gray (R-Mesa) stated, “Prior to 2000 the usury law in Arizona was set at 36%. The legislature tried an experiment to allow payday loans to operate under different rules, and that experiment failed. When they charge 400 percent interest and burden families with those kinds of debts, especially in these kinds of economic times, I think that’s a travesty.”
“Like Prop 200 tried to do, HB 2161 offers false reforms while surreptitiously repealing the payday loan sunset,” stated Sen. Debbie McCune Davis (D-Phoenix), Co-Chair of Arizonans for Responsible Lending. “The voters have spoken on this issue and should be respected.”
Kathy Jorgensen of Saint Vincent de Paul doesn’t buy the industry’s argument that this bill is somehow different than Prop 200, which voters rejected by a 60-40 margin just over one year ago. She said, “If it looks like a duck and it talks like a duck, it’s a duck. And regardless of the name they give it, this is predatory lending and we need to bring a stop to it in this state.”
“Rep. Tobin’s bill doesn’t respect the will of the voters,” added Rep. Daniel Patterson (D-Tucson). “Arizonans said loud and clear they don’t want predatory payday loans crippling Arizona’s families and making tough times even tougher. As elected leaders, we should respect voters’ decisions, and in this case they wisely want the sun to set on payday loans.”
Rep. Doris Goodale (R-Kingman) also spoke at today’s press conference, reiterating her belief that the 400% interest rates charged by payday lenders are “unconscionable” and that therefore, the law allowing these rates needs to sunset on schedule.
Rep. Robert Meza (D-Phoenix), who was unable to attend today’s press conference, issued the following statement regarding HB 2161: “Arizona doesn’t want it, my constituents don’t want it, and whoever signs onto it is showing a lack of leadership for Arizona.”
Rep. Tobin has introduced the bill despite the fact that in his legislative district, which has 21 payday loan stores currently operating, a staggering 62% of voters rejected giving the payday lenders a renewed lease on life.
HB 2161 has been assigned to the House Committee on Banking and Insurance, but has not yet been scheduled for debate. The next meeting of the Banking and Insurance Commitee is set for Tuesday, January 19th.
To learn more, visit www.NoMoreLoanSharks.com.
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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.