Civic Leaders Oppose Payday Loans
FOR IMMEDIATE RELEASE
February 16, 2010
Contact:
David Higuera
ARL Political Director
(520) 907-2080, david@nomoreloansharks.com
Civic Leaders across the State
Register Their Disapproval with 400% Payday Lending
Cities of Mesa, Phoenix and Tucson agree: The Sun Must Set on 400%
TUCSON – Last week, the Mesa City Council announced their opposition to the re-authorization of 400% payday lending in Arizona. The Council made clear that the July 1, 2010 payday loan sunset must stay in effect, thus reinforcing the Consumer Loan Act’s 36% interest rate cap on all small-dollar loans.
Mesa joins the City of Phoenix and the City of Tucson, both of which took stands against payday loan re-authorization legislation in the last couple of weeks.
As quoted in Friday’s Arizona Republic, Mesa City Council Member Dennis Kavanaugh compared the payday loan industry to a vampire, saying, “They suck money out of the community and contribute little.”
Added Council Member Dave Richins, regarding the payday lenders’ claim that enforcing the 36% cap will force them to shut down and leave commercial properties vacant, “I really think more legitimate businesses will move into the vacuum.”
The Phoenix City Council also instructed its intergovernmental affairs team last week to oppose any legislation that would repeal or extend the 2010 payday loan sunset.
Stated Phoenix City Council Member Tom Simplot, “We must stand together to fight the insidious payday loan industry that preys upon the most vulnerable while denigrating our neighborhoods.”
The City of Tucson issued its 2010 Legislative Agenda on January 26th, which highlights the City’s top four legislative priorities for the year. Among them: “Urge the State Legislature to stand against exploitative payday lending practices in Arizona and oppose efforts to extend these practices indefinitely.”
Stated Tucson City Council Member Karin Uhlich, who is also director of the Center for Economic Integrity, “It’s amazing to me that any legislator would even consider voting for a bill to extend a lifeline to payday lenders. The voters were quite clear: the July 1st sunset cannot arrive soon enough!”
# # #
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 Arizona
The Arizona Credit Union League, and Mi Familia Vota.