Home | Classifieds | Place Ad | Public Notices | Galleries | Kudos | Obits | Real Estate | Subscriber Services | Villager | Health Directory | Contact Us
The Verde Independent | Cottonwood, Arizona

home : opinions : commentary May 26, 2016


4/13/2013 1:05:00 PM
Guest Commentary: Let the sun set on debt trap loans
Cynthia Zwick


In 2008, more than 1.2 million Arizona voters said no, by a 2-to-1 margin, to triple-digit interest rates and special exemptions from the state’s usury laws for payday lenders by rejecting Proposition 200, which would have permanently legalized 300% APR payday loans in Arizona. Since then, through bi-partisan efforts, the legislature and Arizonans have rejected several new attempts by lenders seeking carve-outs from the state’s consumer loan laws.

A recent news story conveys the urgency of why more work is needed to enforce and uphold the voters’ mandate. The report showed that many title loans may simply be payday loans in disguise, only possibly worse since borrower’s may be putting their car at risk.

While voters were smart enough five years ago to reject the Prop 200 ballot initiative, payday lenders obviously will try to do and say anything to hide their high-cost, predatory product.

Today, they’re simply hiding in the shadows of one predatory loan scheme – car title lenders – to continue their same old dollar-stripping ways. Regardless of the name they use, it’s clear that it’s just more of same: triple-digit interest rates, putting checking accounts and cars of the most financially vulnerable at great risk and leading to a long-term cycle of repeat debt.

These types of loans ultimately push families into financial situations much worse than when they began – particularly in rural communities – with consequences including bankruptcy, delinquency on other bills, and ultimately bank account closures.

The Arizona Community Action Association, which provides services and programs to assist the vulnerable Arizonans and working poor stabilize their financial lives and move out of and away from poverty, works diligently to protect thousands of Arizona citizens from falling into title-loan type traps from which they may never escape. These so-called lenders, many from out of state, must comply with laws protecting consumers from outrageous interest rates and predatory practices.

More than 80% of the readers responding to the recent article in The Arizona Republic were quick and to the point, characterizing car title lenders as “piranhas.” This underscores the very clear public sentiment of the overwhelming majority of Arizona voters who demanded that the sun set on these types of predatory loans.

We appreciate the work of the legislature in preventing payday or other high-cost lenders from rolling back the voters’ mandate. However, the abuses and tactics exposed by The Republic dramatically emphasize that targeted efforts must continue to ensure the voters’ mandate is both enforced and fully realized to end triple-digit interest rate debt trap loans.

Our community deserves nothing less.



Cynthia Zwick is the Executive Director of the Arizona Community Action Association.


    Most Viewed     Recently Commented
•   Police soon will have one more reason to pull you over (4750 views)

•   What's hot in Verde Valley job market? (2956 views)

•   Cornville man charged with child molestation seeks plea (2875 views)

•   Marana man suffers skull injury, brain bleed following ATV crash (2737 views)

•   Motorcycle rider suffers head injuries in crash (2195 views)





Article Comment Submission Form
Comments are not posted immediately. Submissions must adhere to our Use of Service Terms of Use agreement. Rambling or nonsensical comments may not be posted. Comments are limited to Facebook character limits. In order for us to reasonably manage this feature we may limit excessive comment entries.
Submit an Article Comment
First Name:
Required
Last Name:
Required
Telephone:
Required
Email:
Required
Comment:
Required
Passcode:
Required
Anti-SPAM Passcode Click here to see a new mix of characters.
This is an anti-SPAM device. It is not case sensitive.
   


Advanced Search

HSE - We want to hear from you
Find more about Weather in Cottonwood, AZ
Click for weather forecast


Submission Links
 •  Submit your feedback about our site

Find It Features Blogs Celebrate Submit Extras Other Publications Local Listings
Classifieds | Place Ad | Galleries | Kudos | Real Estate | Subscriber Services | e-News | RSS | Site Map | Find Verde Jobs | Contact Us
© Copyright 2016 Western News&Info, Inc.® The Verde Independent is the information source for Cottonwood and Verde Valley area communities in Northern Arizona. Original content may not be reprinted or distributed without the written permission of Western News&Info, Inc.® Verde News Online is a service of WNI. By using the Site, verdenews.com ®, you agree to abide and be bound by the Site's terms of use and Privacy Policy, which prohibit commercial use of any information on the Site. Click here to submit your questions, comments or suggestions. Verde News Online is a proud publication of Western News&Info Inc.® All Rights Reserved.

Software © 1998-2016 1up! Software, All Rights Reserved