Payday Loan Reform Act

WHAT IT WOULD DO: The law that allows payday lenders to operate in Arizona is set to expire in 2010, but the industry is not making much headway in expanding it at the Arizona Legislature—and even if they get lawmakers to go along with it, they still have to get a signature from Gov. Janet Napolitano. So they’ve decided to pour a couple million bucks into an initiative effort that sugarcoats their lifeline with some new regulations about rolling over loans, cutting rates and setting up payment plans with delinquent clients.

SUPPORTERS SAY: From the paperwork filed with the Secretary of State’s Office: “Arizonans use payday lending services everyday to meet unforeseen expenses and financial emergencies. The payday lending industry is set to be eliminated and the Arizona Legislature refuses to enact reforms to benefit borrowers while preserving this important financial option.” Visit the Web site of Reform AZ Payday Loans.

OPPONENTS SAY: The payday loan industry charges outrageous interest rates that trap people in cycles of debt. Learn more from the Southwest Center for Economic Integrity.

MAJOR FUNDING PROVIDED BY: The payday-loan industry

TOTAL $$$ IN CONTRIBUTIONS: $1,989,636

TOTAL $$$ SPENT: $1,955,259

Campaign finance totals reflect activity through May 31. A list of more recent contributions and expenditures of greater than 10K can be found here.

Find the complete text of each initiative here.

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