Arizona Stop Payday Loans (2008)
From Ballotpedia
| Not on Ballot |
|---|
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| This measure did not appear on a ballot. |
| Arizona Stop Payday Loans | |
| initiated state statute | |
| Year | 2008 |
| Subject | Would repeal Payday loan legislation |
| Sponsored by: | Rep. Marian McClure |
| Opposed by: | Payday Loan Reform Act |
| Current Status | |
| Status | Withdrawn |
Stop Payday Loans is an Arizona initiative that would make payday loans a Class 5 felony. In early June 2008, its supporters announced that they were abandoning efforts to qualify it for the November 2008 ballot in Arizona. Supporters say that, instead, they will turn their efforts to defeating the Payday Loan Reform Act, which is supported by the payday loan industry.[1],[2]
This initiated state statute, if it had passed, would have repealed the section of state law that created payday loans. Because of licenses already in existence, this initiative has an effective enactment date of October 31, 2009. Payday loans would have become a class 5 felony after the enactment date.
Support
Rep. Marian McClure (R-Tucson) is the chairwoman of the Stop Payday Loans campaign.[3] The Democratic Party of Arizona has approved a resolution endorsing the measure. That resolution says that payday loans are "by definition predatory and profit from financially vulnerable Arizona families by trapping them in unending cycles of debt."[4]
McClure said that payday loan reform, such as the Payday Loan Reform Act that is competing with the Stop Payday Loans Initiative for voter approval on the November ballot, is nothing more than "window dressing."[3]
AARP and the Arizona Daily Star are also supporting the initiative.[5]
Opposition
"Reform Arizona Payday Loans" is opposing this initiative. The group has filed its own initiative in response, Payday Loan Reform Act, which would keep payday loans available to Arizonans but would reduce fees on the loans.
According to the Reform AZ Payday Loans web site, thousands of Arizonans use payday loans responsibly to cover unexpected day-to-day expenses. But, the site warns, the Stop Payday Loans Initiative would take away this simple financial option in Arizona. Opponents of this measure argue that eliminating payday loans entirely would cost hurt many families financially, through higher banking fees, credit card late fees, and utility reconnect fees.[6]
Stan Barnes, a lobbyist and consultant to Americans for Financial Reform, a committee funded by the payday-loan industry, opposes this initiative and supports the reform measure. He said the issue comes down to consumer choice.[3]
"Payday-lending stores exist because customers in the real world make rational decisions about borrowing money short-term, and in many instances, payday loans are the least expensive option for people that have an emergency or unforeseen expense they have to deal with," Barnes said.[3]
Opponents of this measure add that ending all payday loans in Arizona would also eliminate more than 2,500 Arizona jobs.[6]
External links
- Full text of the initiative
- Democratic Party resolution in support of the opposing initiative, Oct. 13, 2007
- Reform AZ Payday Loans web site
References
- ↑ Payday loan foes end drive for ballot initiative, June 17, 2008
- ↑ Arizona Capitol Times, Signatures filed for industry-led payday loan initiative, June 23, 2008
- ↑ 3.0 3.1 3.2 3.3 Arizona Republic: "Payday lenders float initiative to prevent loss of businesses," March 4, 2008
- ↑ Democratic Party Resolution in support of the initiative, Oct. 13, 2007
- ↑ Arizona Daily Star, Stop Payday Loans is the initiative to sign, April 22, 2008]
- ↑ 6.0 6.1 Reform AZ Payday Loans web site
