Rep. Andy Tobin carries water for Jan Brewer and payday lenders

Posted by AzBlueMeanie:

First it was the lobbyists from High Ground who run the Governor's office for Jan Brewer, and her campaign co-chair Grant Woods who proposed to give payday lenders what the voters rejected in 2008. Brewer allies back payday lenders

Now House Majority Whip Andy Tobin (R-Paulden) will shepherd the bill to give payday lenders what they want, and to give Arizona's voters the middle finger. What the hell do you people know anyway? Lawmaker tries to keep payday loans:

Tobin said the plan he is sponsoring as HB 2161 is substantially different from what voters rejected in 2008 by a 3-2 margin.

An analysis of Tobin's legislation, however, shows most key provisions are virtually the same as the 2008 ballot measure, which was written by payday lenders and backed by a $14.7 million campaign.

Both include:

• Allowing lenders to charge up to $15 for every $100 borrowed, which translates to an effective annual interest rate of about 390 percent.

• Repealing an existing law that allows unpaid loans to be "rolled over" up to three times for an additional fee.

• Banning lenders from charging borrowers more than twice for the same bounced check.

• Giving borrowers who can't repay the money at the end of the loan a payment plan, without interest, to come up with the money.

There are differences from the failed 2008 ballot measure, however. Tobin's HB 2161 would:

• Require lenders to use a "commercially reasonable method" to verify an that applicant for a new payday loan does not already have an outstanding loan somewhere else.

• Give borrowers up to two business days to back out of a loan without owing anything.

• Require lenders to report the total number and amount of loans and average annual percentage rate to the state. Only aggregate numbers from all lenders would be made public, however.

Efforts to keep payday lending legal despite the 2008 vote are getting a mixed reaction among Republicans who control the Legislature.

Tobin has an uphill battle: For the law to take effect by June 30 — the last day payday lenders can legally operate in Arizona — he needs the votes of two-thirds of both the House and Senate.

That means he needs Democratic support. And most Democrats, including Attorney General Terry Goddard, want the industry out of Arizona.

So contact your state legislators and tell them "hell no" to predatory payday lenders. Let them know there will be consequences if they disregard the will of the voters.