Petitions now tool in payday loan fight

At a recent legislative breakfast, the audience of social-service advocates wanted to know what each lawmaker planned to do for Arizona families. Rep. Marian McClure didn't focus on the hot topics of the state budget shortfall or reforming Child Protective Services. Instead, she made a pitch for 10,000 volunteers to gut the payday-loan industry. McClure, who represents eastern Pima County, needs all the help she can get if she's to collect nearly 154,000 valid signatures by July to go to the ballot. Stop Payday Loans would make it a Class 5 felony to provide the short-term, high-interest loans.

"Typically, I would not attack any business because I'm a damn good Republican," said McClure. But there are limits to her willingness to let the market play out and buyer beware.

"If you even think about it for a minute, you'll realize these loans are costing Arizona businesses big bucks because people paying exorbitant interest are not able to buy other things. And most of the money is going out of state," she said.

With efforts to change the industry thwarted in three legislative sessions, she decided to try her luck with the voters.

She took the petitions to the dealership when she bought a new car. She took them to her dental and hair appointments. She took them to business breakfast meetings. She's in front of churches on Sunday mornings and at libraries in the afternoons. No matter what her audience, she said, people sign. "This isn't a partisan issue."

The payday-loan industry, which argues that it provides viable credit options to people who need them, has formed a political action committee to try to convince the public that such concerns are overblown.

The state law allowing payday loans faced minimal opposition in 2000, passing 24-6 in the Senate and 45-13 in the House.

Then, legislative staff reports said there were four lenders operating in Arizona under a different regulatory format. Now, there are 689 branches operating in Arizona, with more than 100 in Pima County.

Source : http://www.azstarnet.com