Sine Die: Arizonans Turn Back 400% Payday Loans
FOR IMMEDIATE RELEASE
April 29, 2010
CONTACT:
David Higuera (520) 907-2080
david@nomoreloansharks.com
SINE DIE: ARIZONANS TURN BACK 400% PAYDAY LOANS … AGAIN
Despite Flurry of Lobbying and Influence Peddling by Out-of-State Lenders,
The Will of the People Prevails
PHOENIX, AZ — As the Forty-ninth Legislature draws to a close, Arizona voters have struck a major victory for consumers, neighborhoods and the state’s economy.
The voters, who soundly rejected an industry attempt to enshrine 400%-interest payday loans in law in 2008, ensured that the Arizona Legislature upheld their verdict this year.
“During the 2010 Legislative Session, the payday lenders’ attempts to circumvent the will of the voters never gained any traction, with either Republicans or Democrats, in either the Senate or the House,” stated Sen. Debbie McCune Davis (D-Phx), Co-Chair of Arizonans for Responsible Lending.
“It wasn’t for lack of trying by the payday lenders. They came after the sunset with everything they had, including three different bills and dozens of lobbyists. But at the end of the day, the voters’ verdict to end triple-digit loans in Arizona was heard loud and clear by my colleagues on both sides of the aisle.”
“In this time of very divisive politics, it is encouraging that both Republicans and Democrats in Phoenix stood together on this one,” added A.R.L. Co-Chair Marian McClure, Republican of Tucson. “They stood together to say, ’400-percent loans are bad for consumers, bad for the economy, and go against what Arizonans see as fair and appropriate.’”
The payday lenders started trying to extend 400-percent loans early in the session and continued right into the final month. They failed to convince the House Banking and Insurance Committee on January 25, 2010, having to pull the bill at the last minute for lack of support.
They lost a very high-profile battle in the Senate Appropriations Committee on March 16th, in which three Republicans joined two Democrats in voting NO to defeat the measure.
Finally, attempting to write some new and different loopholes into the Consumer Loan Act as a last resort, the payday lenders lacked the support to even get a hearing on April 7th in the Senate Finance Committee. All members except the committee chairman were prepared to vote NO on the lenders’ bill before it was pulled.
“The bottom line is, Arizonans do not want 400% loans, or any triple-digit lending, to continue to be condoned in our state,” said Kelly Griffith of the Center for Economic Integrity in Tucson. “Arizonans made their wishes clear at the ballot box, and just as clear throughout the legislative session.”
After the July 1, 2010 payday loan sunset, the fight against predatory lending continues.
According to the transcript of yesterday’s Advance America investor call to review Q1 earnings, the largest payday lender in the country is “currently exploring alternatives for continuing the service customer (sic) demand in Arizona.”
Leslie Cooper, Director of Arizona Consumers Council warns that as the sunset approaches, our work continues:
“All of us must remain vigilant to ensure that these predatory practices come to an end on July 1, 2010 and are not replaced by other predatory practices.
“Unfortunately, the payday industry has a history in other states of sticking around and attempting to skirt the law. But we’ll stay on the lookout, to protect consumers and promote responsible alternatives.”
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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 Arizona
The Arizona Credit Union League, The Center for Economic Integrity
and Mi Familia Vota