Payday Loan Effort Bounces

Rep. Marian McClure has made it official: She has given up on Stop Payday Loans, an initiative effort she was chairing that would have curtailed the payday lending industry. McClure tells ScrambleWatch she only had about 30,000 signatures and needed more than 153,000 by July 3 to qualify for the November ballot.

Last month, Democratic state Rep. Debbie McCune Davis, who was also leading a team gathering signatures for the effort, announced she was throwing in the towel and instead focusing on defeating a competing proposal sponsored by the payday loan sharks.

That effort—known as the Payday Loan Reform Act—is likely to reach the ballot.

McClure, who has reached her term limit in the House of Representatives and is one of eight Republicans seeking a seat on the Arizona Corporation Commission, says she’ll help with the effort to defeat Payday Loan Reform Act.

McClure says the payday-loan sharks could enact most of the so-called reforms in their plan without any legislation at all.

The real reason they’re pushing a ballot initiative: There’s a sunset clause that automatically repeals the legislation that allowed them to set up shop in the first place, which means they won’t be able to stay in business past 2010 with new legislative approval. And even if they manage to get the Legislature to extend or eliminate that sunset clause, they still need to get Gov. Janet Napolitano to sign the bill.

Opponents of the Payday Loan Reform Act believe they have a better chance of defeating it if there is not a competing measure on the ballot.

Stay tuned to ScrambleWatch for complete coverage of the ballot initiatives when they qualify for the ballot next month!

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2 Responses

  1. This was a half baked idea from the get go. Just need the legislature to do the right thing and let the sunset clause expire. Now they’ve spawned a measure that will have to be defeated. Compounded one mistake made eight years ago with another one.

  2. Traditional Loan programs are changing with the economy and the difference is night and day compared to a few months ago. Payday loans can come in handy for the near future. Things will ease up it will just take some time. http://www.firstamerigo.com/

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