Sep 12, 2008
The payday lending industry has caught another case of 'turf toe,' as a front group for national payday lenders has shown up with a statement in the official Arizona Secretary of State Voter Pamphlet, to be mailed out to all voters later this month. The statement supports the phony reform measure written by industry lobbyists, Prop 200."The Consumer Rights League, a fake grassroots -- or 'Astroturf' -- organization based in Washington, D.C. and backed by payday lending interests, paid the $100 fee to the Secretary of State to have their statement included in the official Voter Pamphlet," stated David Higuera, political director of Arizonans for Responsible Lending, No on 200. "They join another industry 'turf' group, Arizonans for Financial Reform -- Yes on 200 committee -- which is simply a Phoenix-based front group for the billion dollar out-of-state payday lenders, eager to keep exploiting Arizonans."
"This was a drop in the bucket, of course, considering the $9 million the payday lenders have already spent to push the status quo in our state with Prop 200. These guys are spreading money around Arizona like mob bosses at a family wedding," said Ken Clark, campaign manager for the No on 200 campaign, which has been endorsed by dozens of civic and business groups as well as military, civic and religious leaders across the state.
"We may live in the desert, but a new breed of sharks has invaded Arizona," said Clark. "They are 'Astroturf Sharks.' They have toothy smiles and pretend to be grassroots, but they are preparing to take a huge bite out of the state's economy. $150 million a year bled from hard working Arizonans. Forever."
"But the more people learn about their tactics," concluded Clark, "the more they are fighting back and helping us spread the No on 200 message." Prop 200 would permanently legalize 400 percent interest for payday lenders, but that effect is not apparent from a reading of the ballot measure language, which is obscure and lengthy. Nor will voters know from reading the ballot language that true payday lending reform will come to Arizona only if they vote "No."
"The payday lenders' special deal, exempting them from the state's 36 percent interest cap, expires in 2010," explained Higuera. "By defeating Prop 200 and maintaining that expiration date in the law, we will end the misguided authorization of 400 percent-interest loans and bring payday lenders back under the Consumer Loan Act."
Political watchdogs like Lou Dobbs have called on public officials to address predatory payday lending.
"You're probably asking, what is the difference between, well, payday loans and loan sharking. And if you look at those rates, you'll find there's not much difference in point of fact in interest rates," said Dobbs on his May 16, 2008 show on CNN. "But for some reason, the United States Congress and this administration think it makes perfectly good sense to do what is being done to these unfortunate people left to payday loans. It's inexcusable in my opinion. Absolutely inexcusable. American business, perhaps the US Chamber of Commerce, ought to step into this and do the right thing."
The Greater Phoenix Chamber of Commerce, Chandler Chamber of Commerce, WESTMARC, and Southern Arizona Leadership Council -- four leading business groups in the state -- all have done the right thing by publicly opposing Prop 200, as have a growing number of public officials, religious groups and individual citizens. They all know that Prop 200 is no reform at all, and in fact would legalize predatory payday loans for good.
The Arizona AARP, Arizona Education Association, and Arizona Ecumenical Council are among dozens of organizations that have joined the No on 200 Campaign. The Center for Responsible Lending, target of a smear campaign by the Astroturf "Consumer Rights League" in the forthcoming SOS Voter Pamphlet, is also supporting the No on 200 Campaign.
"We're focused on organizing citizens groups to get the word out that this phony reform, Prop 200, is no reform at all," said Senator Debbie McCune Davis, chair of Arizonans for Responsible Lending, No on 200. "It's a tall order in the face of the millions the out-of-state payday lenders are pouring into their marketing campaign in Arizona, with slick mailers and slicker TV ads, but we've got the facts on our side. We trust the voters will see through the payday lenders' propaganda and vote 'No' on 200."
Arizona voters will decide on November 4th whether to give payday lenders license to charge triple-digit interest rates forever; or, by voting No on 200, demand that payday lenders abide by the same laws that govern other lenders in the state, including a 36 percent interest cap on consumer loans.
Source:
Marketwatch.com
