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Judge Says No Time to Clarify Payday Lending Ballot SummaryPHOENIX, Aug. 27 /PRNewswire-USNewswire/ -- Superior Court Judge Judge Myers said that the description of the ballot measure drafted by Secretary Brewer was technically accurate, and that with only 50 words to explain complex issues, choices have to be made. However, the fact that voters will be choosing between 400 percent
interest and 36 percent interest should have been made clear in the official
language, said Senator "We are disappointed the Secretary of State will not be required to give voters the crucial piece of information they will need to make an informed choice," said Davis. The committee pushing the ballot measure is fully funded by the payday
lending industry, which has spent "The payday lending ballot measure is no reform at all. It threatens our
pocketbooks, the health of our economy, and the integrity of our ballot
initiative process," said Senator Federal regulators clarified that the Truth in Lending Act covers payday lenders soon after the 2000 law granting them an exemption fromArizona's 36 percent interest rate cap was passed. Since then, payday lenders have been required to disclose that their interest rates are 391 percent on a typical 2- week loan. "The Truth in Lending Act, the law of the land for forty years, requires
that the cost of credit be stated as both a dollar finance charge and as an
annual percentage rate," said "The purpose of the Truth in Lending Act is to enable consumers to make informed choices about credit based on an apples-to-apples comparison, regardless of the mix of fees and interest used by lenders to hide the true cost of loans," said Fox. "Lenders from pawn shops to mortgage brokers are required to clearly disclose the APR to inform consumers." "It's now up toArizona citizens to inform themselves about what this
ballot measure really means," said Dozens ofArizona groups have joined the Vote No on 200 coalition, and will urge their members to reject the false reform and let the 2000 law sunset as scheduled in 2010. "Payday lenders will be legally allowed to operate inArizona after the
interest rate exemption expires in 2010 as long as they keep their interest
rates under 36 percent, as other lenders already must do, or they can close up
shop if they can't survive on that - the choice is theirs," said Senator
THE APR FOR PAYDAY LOANS SHOULD PROP 200 BE APPROVED,
BASED ON FEE CAP OF $15 PER $100
(APR varies according to loan term, 14 days is typical)
Loan Term (in days) APR
5 1095%
6 913%
7 782%
8 684%
9 608%
10 548%
11 498%
12 456%
13 421%
14 391%
15 365%
16 342%
17 322%
18 304%
19 288%
20 274%
21 261%
22 249%
23 238%
24 228%
25 219%
26 211%
27 203%
28 196%
29 189%
30 183%
31 177%
32 171%
33 166%
34 161%
35 156%
Paid for by Arizonans for Responsible Lending, No on 200. Senator Debbie
McCune Davis, Chair
Major Funding by United Food and Commercial Workers Local 99, Phoenix AZ,
Center for Responsible Lending, Durham NC, Service Employees International
Union, Washington DC, and Strategic Issues Management Group, Tucson AZ;
Additional Support from Arizona AARP
www.200isNoReform.com * (602) 561-5881
SOURCE Arizonans for Responsible Lending Tags: ,FIN,POL,STP,LAW,AZ-ballot-summary _ _Is your favorite bookmark site missing? Ask for it. |
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