In 2008, the voters of Arizona defeated Prop. 200, a ballot measure from former state senator and lobbyist Jonathan “Payday” Paton and the predatory lending industry to extend the state authorization for payday loans in Arizona.
This did not end predatory lending in Arizona, however. The payday loan centers quickly converted to auto title loan centers, something still authorized under Arizona law. The predatory lending industry has tried several times since 2008 to revive certain forms of predatory lending in Arizona, but each time they have been thwarted — until now.
Tea-Publicans in the House narrowly approved a strike everything amendment to SB 1316 (.pdf) on Monday, authorizing high interest predatory flex loans. Arizona House approves 204-percent ‘flex’ loans.
Laurie Roberts of The Republic writes, Roberts: House throws poor Arizonans to the sharks:
Never again let it be said that our leaders don’t care about Arizona’s struggling families.
Or at least, the ungodly profits to be made off of them.
The Republican-controlled House on Monday approved Senate Bill 1316, allowing the payday loan industry to come into Arizona and offer “flex loans” with interest rates of up to 204 percent.