Saturday, February 27, 2016

Payday loans, like toenail fungus, don't go away unless a thorough cleaning job is done

...And, apparently, Arizona's legislators don't think that Arizona's voters were thorough, or clear, enough in 2008 when we soundly rejected their payday loan legalization proposal in that year's election.

Payday loans were short term cash loans with usurious interest rates (400%!).  The loophole in Arizona law that exempted them from the 36% cap for an annual interest rate expired in 2010, and while there have been periodic efforts by legislators to revive them, those have all failed.

Well, Arizona's legislators are nothing if not persistent.

On Monday, the House Ways and Means Committee will hear a striker to SB1316.

If enacted, it would bring back payday loans by another name, "flexible credit loans".  Such "loans" would carry an annual interest rate of "only" 204%.

The bill is being pimped pushed by an astroturf (fake grassroots, but it doesn't look like that they are putting much effort into hiding who is behind this) group named "Arizona Financial Choice Association' (AFCA) -
From my FB feed, 2/27/2016

A quick check of records at the Arizona Corporation Commission turns up this -

A little quick research into the two listed "directors" turned up strong ties to the legal loansharking industry -

In other words, the FB ad pushed by this group is partially correct - people *should* contact their legislators about this bill.

And let them know that we are watching.

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