Friends,

Today is another great day for Arizona!

The House Commerce Committee refused to hear HB2550, because high-cost lenders are not welcome in this state.

Committee Chairman Jim Weiers, the bill’s author, held the bill from consideration because of the clear lack of support. The committee meeting just adjourned.

This is a great victory, and it’s because of YOU! The committee members reported they received floods of emails and phone calls asking them to vote NO. This bill had no chance of passing today because of your civic engagement.  THANK YOU.

Here are some of the organizations and individuals that registered their opposition to HB2550 in the hearing today:

AARP Arizona, Arizona Consumers Council, Southwest Center for Economic Integrity, Society of St. Vincent de Paul, William E Morris Institute for Justice, SEIU Arizona, Arizona Coalition Against Domestic Violence, Children’s Action Alliance, Christina Plante, Virginia Brant, and Mary Murphy, state president of the All Arizona School Retirees Association (AASRA).

Additionally, many of you wrote your legislators directly. One constituent put it very clearly:

“As a conservative voter (and registered Republican), these types of businesses that target lower income people really irk me… Triple digit interest is loan sharking, plain and simple…

[And] now the people have spoken, and let the payday loans clause expire.  This is really the issue: will you go against what the people of Arizona have clearly stated they want?”

Thank you all for speaking up!

This victory would not have been possible without you. And, we couldn’t have done it without the legislators who know that Arizonans deserve better.

We thank those members of the House Commerce Committee who were prepared to vote ‘No’ on this predatory lending bill today.

While we’ve won the day, we don’t believe we have heard the last of this bill, so stay tuned for updates, and thanks for staying involved!

All our best,

Arizonans for Responsible Lending

Dear Supporters,

Your calls to Legislators against HB2550 are working!  Keep them up!

We are hearing great reports from the field and have gotten a couple of commitments from Commerce Committee members to vote NO!

The bill, HB2550: “Small Installment Loans,” will be heard in the House Commerce Committee TOMORROW MORNING, February 16th. (Mtg starts at 9:00am)

Please focus your calls this afternoon on the 5 members of the committee that need to hear from you most! (see below)

It will take you only about 5 minutes to make the five calls. But those five minutes could be huge for our ability to stop this predatory lending bill now. Please pick up the phone.

Thank you for taking action today!

David
Arizonans for Responsible Lending

~~~

Here’s why we should stop HB 2550:

• HB 2550 will legalize triple-digit APR interest rates to Arizona consumers for small consumer installment loans, exempting a new industry from the state’s 36% usury cap on consumer loans.

• HB 2550 ignores the voters’ mandate. When Arizona voters went to the polls in November 2008, they clearly said No, by a 60%-40% margin, to triple digit interest rates, special deals under the state’s usury caps, and fake “reforms” in the industry-sponsored Proposition 200.   HB 2550 ignores the voters’ mandate by legalizing another form of high cost consumer lending that will inevitably lead to long-term debt.

• Arizona has rejected these schemes for years! HB 2550 is the same fee structure as bills that were rejected in 2009 and 2008. Voters and the legislature repeatedly rejected triple-digit interest loans that generate piles of fees for the lender and long-term debt for the borrower.

• Arizona consumers cannot afford to replace one predatory loan product with another.  We fought for 10 years to finally rid the state of payday loans.  The voters don’t want new triple-digit loan products on the market. Our state already has consumer lenders offering small installment loans in AZ at the current 36% rate cap or less.

• NO MORE EXCEPTIONS TO THE CONSUMER LOAN ACT!

Contact these members of the

House Commerce Committee TODAY!

Tell them to Vote NO on HB2550!

Tell committee members to respect the voters’ will and reject triple-digit interest rate lending in Arizona.

Language of HB 2550: Click here

Commerce Committee Updates, including live video feed of the hearing on 2/16: Click here

Dear House Commerce Committee Member,

Please vote NO on HB2550 on your agenda tomorrow, for the reasons below.

Thank you,

Kelly Griffith

Southwest Center for Economic Integrity
(520) 250-4416
www.economicintegrity.org

Just like payday loans, HB 2550 would create a special carve-out for high-cost loans:

• Just like payday, the proposed fee structure incentivizes long-term, triple-digit interest rate debt. These loans are no different than payday loans, particularly when you consider the massive loan flipping.  Records from companies making these loans in other states show that 85% to 90% of profits for these loans come from refinancing loans to existing customers!

• HB 2550 hinders a sustainable financial market: Once in the market, just like payday lenders, all of these lenders charge the exact same rate – the highest allowable. In the words of Andrew Morrison, CEO of Sun Loans/Brundage Management, “The ceilings in fact become floors and everyone charges the exact same rates.”

HB 2550 would replace one predatory product with another:

• HB 2550 would legalize triple-digit APR interest rates to Arizona consumers for small consumer installment loans, exempting a new industry from the state’s 36% usury cap on consumer loans (A.R.S. 6-632 – Finance charges).

• HB 2550 ignores the voters’ mandate. When Arizona voters went to the polls in November 2008, they clearly said NO, by a 60%-40% margin, to triple-digit interest rates, special exemptions from the state’s usury cap, and fake “reforms” in the industry-sponsored Proposition 200.  HB 2550 would ignore the voters’ mandate by legalizing another form of high-cost consumer lending – under another exemption from the Consumer Loan Act – that inevitably would lead to long-term debt for borrowers.

• Arizona consumers cannot afford to replace one predatory loan product with another.  Our state – and others – already has consumer lenders serving this market, offering small installment loans at the current 36% rate cap or less. In addition, charity and relief societies, friends and families, existing AZ financial institutions and credit unions that offer small unsecured loans under the terms of the existing rate cap already exist in Arizona.

Voters don’t want triple-digit interest rates allowed in Arizona:

• Voters clearly stated that the 36% cap should apply to all lenders. No more special deals!  The carve-out in HB 2550 would allow certain lenders to play by their own rules, giving them a government-regulated, government-endorsed, competitive advantage over other consumer lenders in the market.

• HB 2550’s schemes have been rejected many times: HB 2550 is the same fee structure as HB 2061 and HB 2071, both of which never even made it out of committee in 2009.  It’s the same as HB 2672 from 2008, which also was rejected.  Just as they did with payday loans, voters and the legislature repeatedly rejected triple-digit interest loans that generate piles of fees for the lender and long-term debt for the borrower.

Prop 200, the Payday Loan Reform Act (2008):

• Prop 200, placed on the ballot and financed with nearly $15 million by the payday loan industry in 2008, would have continued triple-digit interest loans in Arizona by extending the industry’s exemption from the Consumer Loan Act. In 29 of 30 legislative districts, every congressional district, and every county across the state, their proposal was rejected.
  

Voters agreed: No more special deals for predatory lenders!



Prop 200 Results by Legislative District (2008):

How the Fees Work in HB 2550:

HB 2550 would authorize acquisition fees and monthly handling fees using a complicated pricing structure.  The acquisition fee, 10% of the loan up to $75 dollars, is paid off within the first 90 days of the loan, but can be charged up front each time the loan is renewed.

HB 2550 would allow lenders to renew, or flip, loans up to three times per year.  There is no limit on the number of total renewals per loan. The lender does not have to wait until the end of the loan term to renew the loan and the lender may chose to renew the loan for an amount higher than the original loan.

Dear Supporters,

We must marshal all resources to come out strongly against a predatory consumer lending bill, HB2550, right now.

The bill, called “Small Installment Loans,” will be heard in the House Commerce Committee this Wednesday, February 16th, at 9:00AM.

Here’s why we should stop HB 2550–NOW:

• HB 2550 will legalize triple-digit APR interest rates to Arizona consumers for small consumer installment loans, exempting a new industry from the state’s 36% usury cap on consumer loans.

• HB 2550 ignores the voters’ mandate. When Arizona voters went to the polls in November 2008, they clearly said No, by a 60%-40% margin, to triple digit interest rates, special deals under the state’s usury caps, and fake “reforms” in the industry-sponsored Proposition 200.   HB 2550 ignores the voters’ mandate by legalizing another form of high cost consumer lending that will inevitably lead to long-term debt.

• Arizona has rejected these schemes for years! HB 2550 is the same fee structure as bills that were rejected in 2009 and 2008. Voters and the legislature repeatedly rejected triple-digit interest loans that generate piles of fees for the lender and long-term debt for the borrower.

• Arizona consumers cannot afford to replace one predatory loan product with another.  We fought for 10 years to finally rid the state of payday loans.  The voters don’t want new triple-digit loan products on the market. Our state already has consumer lenders offering small installment loans in AZ at the current 36% rate cap or less.

• NO MORE EXCEPTIONS TO THE CONSUMER LOAN ACT!

Contact the members of the

House Commerce Committee TODAY!

Tell them to Vote NO on HB2550!

Tell committee members to respect the voters’ will and reject triple-digit interest rate lending in Arizona.

Language of HB 2550: Click here

Commerce Committee Updates, including video: Click here

Thank you for taking action,

Arizonans for Responsible Lending

Press Release from Advance America, the nation’s largest payday loan chain:

SPARTANBURG, S.C., July 8, 2010 /PRNewswire –

Advance America, Cash Advance Centers, Inc. (NYSE: AEA), announced today its intention to cease operations in its 47 centers in Arizona. The decision to cease operations comes after the existing law permitting cash advances in Arizona expired on June 30, 2010 and the Company concluded that an economically viable alternative product or service does not currently exist.

Commenting on today’s announcement, the Company’s President and Chief Executive Officer Ken Compton said, “We are disappointed that we will be unable to continue serving consumers in Arizona. Our customers have consistently told us that they are highly satisfied with our services. Advance America strongly believes that a regulated, competitive and transparent financial environment benefits consumers. We believe that consumers are best served when they can choose the financial service that best suits their needs, and in many cases, that may be a cash advance. We regret that we can no longer serve the interests of many Arizonans.”

For the three months ended March 31, 2010, total revenues and center gross profit generated from the Company’s operations in Arizona was approximately $3.7 million, and $1.5 million respectively.

In a separate decision, the Company has decided to close approximately 75 additional centers, approximately 55 of which are located in Washington and Colorado which have had recent law changes. The operations of majority of these centers will be consolidated with those of nearby centers.

The Company estimates that the costs associated with the cessation of operations in Arizona and the closing of the additional centers will be between $2.8 and $5.0 million, with approximately $1.0 million to be incurred during the second quarter of 2010 and the remainder to be incurred during the third and fourth quarters of 2010.

About Advance America Cash Advance

Founded in 1997, Advance America, Cash Advance Centers, Inc. (NYSE: AEA) is the country’s leading provider of non-bank cash advance services, with approximately 2,500 centers and 72 limited licensees in 32 states, the United Kingdom, and Canada. The Company offers convenient, less-costly credit options to consumers whose needs are not met by traditional financial institutions. The Company is a founding member of the Community Financial Services Association of America (CFSA), whose mission is to promote laws that provide substantive consumer protections and to encourage responsible industry practices…

Forward-Looking Statements and Information:

Certain statements contained in this release may constitute “forward-looking statements” within the meaning of federal securities laws. All statements in this release other than those relating to our historical information or current condition are forward-looking statements. For example, any statements regarding our future financial performance (including estimated costs associated with the cessation of operations), our business strategy, and expected developments in our industry are forward-looking statements. Although we believe that the current views and expectations reflected in these forward-looking statements are reasonable, those views and expectations and the related statements are inherently subject to risks, uncertainties, and other factors, many of which are not under our control and may not even be predictable. Therefore, actual results could differ materially from our expectations as of today and any future results, performance, or achievements expressed directly or impliedly by the forward-looking statements. For a more detailed discussion of some of the factors that may cause our actual results to differ from our current expectations, please refer to the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, copies of which is available from the Securities and Exchange Commission, upon request from us, or by going to our website: www.advanceamerica.net

SOURCE Advance America, Cash Advance Centers, Inc.

Copyright (C) 2010 PR Newswire. All rights reserved

Attorney General Terry Goddard today announced the formation of “Operation Sunset”, an enforcement initiative of the Office designed to aggressively pursue payday lenders who attempt to evade the ban on payday loans. The Office will take action against any payday lenders that continue offering loans with illegally high interest rates after the law expires on June 30.

“I will use every tool at my disposal to enforce the end of exorbitant payday loans in Arizona and seek fines and penalties against those who try to continue this abusive practice,” Goddard said. “I encourage citizens to report violations to our Office. Our enforcement will be swift and aggressive.”

Goddard noted that other states, such as North Carolina and Arkansas, have seen deceptive practices following changes in their laws that ended payday loans. Auto loans, pre-paid debit cards and Internet payday lending are alternatives used by the payday loan industry elsewhere to evade the law. For example, pre-paid debit cards have been offered with an interest rate and fees that would exceed Arizona’s annual percentage rate limit of 36 percent.

“We are grateful to Attorney General Goddard for keeping up the good fight to eliminate this industry and support the people of Arizona and their neighborhoods,” said Bishop Henry L. Barnwell, pastor emeritus of First New Life Baptist Church in Phoenix.

“It’s about time the payday loan industry be forced to follow the same rules as all other lenders when making their short-term loans,” said Sunnyslope community leader Christina Plante. “The job of the people isn’t over yet. It will still be our responsibility to work in partnership with the Attorney General’s Office to identify anyone charging triple-digit interest rates.”

The Attorney General’s Office is sending payday loan companies a letter informing them of the “Operation Sunset” initiative and his commitment to vigorously enforce Arizona’s consumer protection laws.

If consumers see violations of the law, they should call the Office’s dedicated Operation Sunset phone line at 1-866-879-5219 or email our offices at operationsunset@azag.gov . They can also visit Facebook at http://www.facebook.com/operationsunset .

Attached is the “Operation Sunset” letter that will be sent to payday lending institutions. For additional information, contact Press Secretary Molly Edwards at 602-542-8019.

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.”

# # #

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

www.NoMoreLoanSharks.com

Dear Friends,

Yesterday was a big victory for Arizona consumers, and you made it happen. Thank you!

The payday lenders’ bill, their second attempt this session to repeal the 2010 sunset, went down to defeat in the Senate Appropriations Committee on a bipartisan 5 to 3 vote.

The Committee voted it down despite the fact that the payday lenders swarmed the Capitol with employees, lobbyists and national industry executives.  At the end of the day, the Committee voted it down because they heard from YOU.

Our gratitude goes out to  the many organizations and individuals from all corners of the state who contributed in countless ways to defeat this bill against tremendous odds.

This victory is your victory.

But, while yesterday was a high-profile win for consumers, the fight is not over.

The payday lenders, with $150 million a year on the line, are not likely to take this repudiation by the Senate Appropriations Committee as the final word, just like they did not take the House Banking Committee’s opposition in January, or the voters’ opposition at the ballot box, as the final word.

Until this legislative session comes to a close, we must remain alert and vigilant.

While we keep our eye on the payday lenders, this is also an important moment to thank the senators that voted to uphold the will of the voters and protect Arizona consumers:

Republican Sens. David Braswell of Phoenix, Ron Gould of Lake Havasu City and Sylvia Allen of Snowflake, and Democratic Sens. Rebecca Rios of Apache Junction and Paula Aboud of Tucson, all voted against HB2370.  Additionally, Democratic Sen. Amanda Aguirre of Yuma, who had to leave the marathon hearing before the vote took place at nearly 7:00 pm, also was committed to voting against the bill.

Please call these senators THIS WEEK to thank them for standing with the voters — and standing up for Arizona consumers!

• Sen. David Braswell, District 6 – North Phoenix, Anthem, New River
  (602) 926-5284  dbraswell@azleg.gov

• Sen. Ron Gould, District 3 – Mohave County
  (602) 926-4138  rgould@azleg.gov

• Sen. Rebecca Rios, District 23 – Pinal County
  (602) 926-5685  rrios@azleg.gov

• Sen. Paula Aboud, District 28 -  Central Tucson
  (602) 926-5262  paboud@azleg.gov

• Sen. Sylvia Allen, District 5 – Apache, Graham, Gila and Navajo Counties
  (602) 926-5219 sallen@azleg.gov

• Sen. Amanda Aguirre, District 24 – Yuma County
  (602) 926-4139  aaguirre@azleg.gov

We are engaged in an epic struggle against a very powerful industry.  And you can bet that when we reach the finish line here in Arizona, it will have a positive effect on consumers not just here, but nationwide.

My deepest gratitude to you,

Debbie McCune Davis

~~~

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

www.NoMoreLoanSharks.com

PRESS ADVISORY
March 16, 2010

CONTACT:
David Higuera, AZ for Responsible Lending (520) 907-2080
Molly Edwards, Attorney General Terry Goddard (602) 542-8019

Press Conference Today, 10:00 a.m., to Underscore
Bipartisan Opposition to HB2370 – Payday Loans

Bill to be heard at 1:30 p.m. in Senate Appropriations Committee

PHOENIX –   Attorney General Terry Goddard, Senate Majority Leader Chuck Gray, Sen. John Nelson, Sen. Debbie McCune Davis, and nationally-recognized consumer advocate Jean Ann Fox will hold a press conference later this morning about HB2370 – the payday loan strike-everything bill to be heard later today in Senate Appropriations Committee.

HB2370, like HB2161 earlier in the session, would authorize 400% payday loans to continue in Arizona indefinitely, and extend payday lenders’ special exemption from the state Consumer Loan Act.

WHAT:
Press Conference re: Payday Loan Re-Authorization Bill, HB2370

WHEN:
TODAY,  March 16, 2010
10:00 AM

WHERE:
Senate Hearing Room 3
Arizona State Senate
1700 West Washington

WHO:
Arizona Attorney General Terry Goddard
Sen. John Nelson (R-Glendale)
Jean Ann Fox, Director of Financial Services, Consumer Federation of America
Sen. Debbie McCune Davis (D-Phoenix)
Sen. Majority Leader Chuck Gray (R-Mesa)

Time for Q&A with all speakers will be provided after the presentations.

For a breakdown of why HB2161 / 2370 is NOT reform, click here.

For a breakdown of why HB2161 / 2370 is the same as Prop 200, click here.

For Frequently Asked Questions, click here.

# # #

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

www.NoMoreLoanSharks.com

PRESS ADVISORY
March 15, 2010

CONTACT:
David Higuera, AZ for Responsible Lending (520) 907-2080
Molly Edwards, Attorney General Terry Goddard (602) 542-8019

Tuesday Press Conference at Capitol to Underscore
Bipartisan Opposition to HB2370 – Payday Loans

PHOENIX –   Attorney General Terry Goddard, Senate Majority Leader Chuck Gray, Sen. John Nelson, Sen. Debbie McCune Davis, and nationally-recognized consumer advocate Jean Ann Fox will hold a press conference Tuesday morning about HB2370 – the payday loan strike-everything bill to be heard later Tuesday in Senate Appropriations Committee.

HB2370, like HB2161 earlier in the session, would authorize 400% payday loans to continue in Arizona indefinitely, and extend payday lenders’ special exemption from the state Consumer Loan Act.

WHAT:
Press Conference re: Payday Loan Re-Authorization Bill, HB2370

WHEN:
Tuesday, March 16, 2010
10:00 AM

WHERE:
Senate Hearing Room 3
Arizona State Senate
1700 West Washington

WHO:
Arizona Attorney General Terry Goddard
Sen. John Nelson (R-Glendale)
Jean Ann Fox, Director of Financial Services, Consumer Federation of America
Sen. Debbie McCune Davis (D-Phoenix)
Sen. Majority Leader Chuck Gray (R-Mesa)

Time for Q&A with all speakers will be provided after presentations.

# # #

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

www.NoMoreLoanSharks.com