Nobody wants flexible loans except out of state lenders – Arizona Capitol Times Time
Representative JD Mesnard is wrong.
Arizonans don’t want “flex loans” from payday lenders.
In an opinion piece this week, Mesnard defended his bill to allow 204% debt trap in Arizona without ever mentioning the interest rate.
On the House floor, he even admitted that not a single voter said, “I need this law.”
In 2008, millions of Arizona voters confirmed our current annual rate cap of 36%. Almost every year since then, payday lenders have tried to overturn the will of voters, and our legislature has correctly dismissed these gimmicks.
That year, dozens of groups – from AARP, Arizona Children’s Action Alliance, religious organizations, and many others – vigorously opposed SB 1316, a cover for payday loan re-entry through the back door.
After the House of Representatives voted to approve these toxic loans, 45 Arizona religious leaders called on the Senate to oppose these usurious and immoral credit practices.
When the House of Representatives vote on SB1316 took place, Republican and Democratic lawmakers admitted that alleged petitions from questionable payday lenders backing these high-yield loans may have included names of people who actually don’t want loans that cost $ 10,000 to be repaid $ 2,500.
The only people who want 204% interest loan are payday out-of-state lenders and their lobbyists. No one else.
Cynthia Zwick is the executive director of the Arizona Community Action Association