Predatory lenders back with strike everything amendment on Wednesday

Posted by AzBlueMeanie:

Just as I said they would, the predatory payday loan industry is back again with a strike everything amendment to try one more time to keep their predatory business alive and well in Arizona. Payday lenders try 1 more time:

Unable to keep payday loans legal in Arizona, lenders are making a last-ditch plea to get lawmakers to approve an alternate plan to keep them in business beyond June 30.

Legislation set for debate Wednesday would alter existing laws on consumer loans to let lenders charge an origination fee of up to 7.5 percent for loans up to $1,000. That is 2.5 points higher than current law.

They also would be able to charge a new $10 fee for preparing documents on collateral and obtaining a credit report.

But they would have to live under existing laws limiting the annual percentage rate that can be charged under the loan itself to 36 percent.

Lobbyist Lee Miller, who represents Arizona Consumer Finance Services of Arizona, said payday lenders realize their industry effectively is dead in Arizona. "They got the message," he said. "They understand what's acceptable for making loans is 36 percent annual percentage rate."

But with the changes Miller wants, the actual charges will be more – though not as high as on payday loans.

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Sen. Debbie McCune Davis, D-Phoenix, who has led the fight to kill payday lending, said she had not seen what the industry is proposing but already disliked it. She said she's particularly suspicious of this last-minute push by the payday lenders.

They are using a procedural maneuver of a "strike-everything" amendment that will be considered Wednesday by the Senate Finance Committee.

That would strip the new language onto an unrelated bill that already has been approved by the House.

That means just a single public hearing on the issue: If the committee approves, the bill goes to the full Senate and then back to the House to concur with the changes, with no need for an additional hearing there.

Call your state legislators and tell them to "kill the bill"(amendment).