Sélectionner une page

Arizona Cash Advance Reform, Proposition 200 (2008)


  • 1 Election results
  • 2 Text regarding the initiative
  • 3 History
  • 4 information on the proposition
  • 5 Supporters
    • 5.1 arguments that are supporting
    • 5.2 Donors to Proposition 200
  • 6 Opposition
    • 6.1 Opposing arguments
  • 7 Aftermath
  • 8 road to the ballot
    • 8.1 Ballot name lawsuit
  • 9 See also
  • 10 links that are external
    • 10.1 fundamental information
    • 10.2 Supporters
    • 10.3 Opponents
  • 11 Footnotes
Arizona Constitution
1 • 2 • 3 • 4 • 5 • 6 • 6.1 • 7 • 8 • 9 • 10 • 11 • 12 • 13 • 14 • 15 • 16 • 17 • 18 • 19 • 20 • 21 • 22 • 25 • 26 • 27 • 28 • 29 • 30

Arizona Proposition 200, also called the cash advance Reform Act, ended up being in the November ballot in Arizona as a citizen-initiated constitutional amendment. It had been beaten.

The payday-loan effort ended up being mainly supported by the payday-loan company within the continuing state, and ended up being less strict compared to the avoid payday advances Initiative, sponsored by Rep. Marion McClure, D-30, and Sen. Debbie McCune Davis, D-14. That measure had been withdrawn at the beginning of June if not sufficient signatures had been being gathered to qualify it for the ballot. 1

Election results

Arizona Payday Loan Reform
Result Votes Percentage
d No 1,271,717 59.6per cent
Yes 860,607 40.4per cent

Text for the effort

The 100-word description filed with all the Arizona Secretary of State’s workplace with this initiated state statute checks out:

Arizonans use payday lending services every day to meet up unforeseen costs and emergencies that are financial. The payday lending industry is placed to be eradicated therefore the Arizona Legislature will not enact reforms to profit borrowers while preserving this crucial economic choice. This measure provides dramatic reform that is pro-consumer payday lending and protect customer option. It provides a substantial price cut, removes rolling-over major to extend that loan, produces a payment plan free of charge to clients that can not fulfill their obligations, and inhibits a debtor’s power to get one or more loan at the same time. 3 4


The lending that is payday had been an $85 billion industry that delivers short-term loans, which were frequently guaranteed having a check postdated to the debtor’s next payday. The attention price within the lack of legislation had typically worked away to on average $15 per $100 lent on a two-week loan. The high rates of interest had been exactly just what had resulted in legislative tries to control the industry. The training had been unlawful in fifteen states during the period of Proposition 200. In 2008, as well as Prop 200, Ohioans voted on payday financing in Ohio Issue 5. In Ohio and Arizona together, the quantity of payday-lending branches outnumbers the Starbucks and McDonald’s outlets combined. 5

Information on the proposition

Under this proposition:

  • The payday-loan industry, which faces eradication this year when an enabling law expires, could have its straight to exercise into the state stretched indefinitely.
  • Fees payday loan providers are permitted to charge would drop from $17.65 to $15 on a $100, two-week loan.
  • Loan providers wouldn’t be allowed to move throughout the principal into extensive loans and will have to provide customers payment plans.


« Arizonans for Financial Reform » was supporting this effort. It had been filed in reaction towards the avoid payday advances Initiative, which will expel all payday dollar financial group loans locations advances.

In line with the site of some other support that is affiliated, « Reform Arizona payday advances, » 6 , a huge number of Arizonans usage pay day loans responsibly to pay for unanticipated day-to-day costs. But, the website warns, the avoid payday advances Initiative would remove this easy option that is financial Arizona. Supporters of the measure argued that eliminating loans that are payday would harm numerous families economically, through higher banking fees, bank card belated costs, and energy reconnect fees. 6

Stan Barnes, a lobbyist and consultant to Americans for Financial Reform, a committee funded by the payday-loan industry, supported this measure and stated the problem boils down to customer option.

« Payday-lending shops occur because clients when you look at the world that is real logical decisions about borrowing cash short-term, as well as in numerous circumstances, pay day loans would be the most affordable choice for some people that have an urgent situation or unexpected cost they should handle, » Barnes stated.

Supporters included that closing all loans that are payday Arizona would also eradicate a lot more than 2,500 Arizona jobs. 6

Supporting arguments

Main arguments submit meant for Proposition 200 included:

  • Prop. 200 would mandate a cut that is substantial loan charges
  • Establishes a repayment plan that is flexible
  • Requires lenders that are internet be licensed when you look at the state
  • Enacts tough regulations that are new split straight straight down on unscrupulous operators
  • « About 5 per cent of Us citizens took down a quick payday loan. There is scant proof that their great deal might have been better if rejected that possibility. A research by two economists with all the ny Federal Reserve Bank unearthed that after Georgia and new york abolished payday financing, bounced checks and Chapter 7 bankruptcies increased. » 7

Donors to Proposition 200

By the end of July, supporters of Prop. 200 had provided about $8.7 million up to a campaign committee organized to market the effort. The Arizona Republic stated that « nearly every cent. happens to be donated by – guess who? – a trade team representing payday loan providers: the Arizona Community Financial solutions Association. » 8


The no that is website 200 : It is No Reform after all had been created in opposition for this effort.

Rep. Marian McClure (R-Tucson), chairwoman of this avoid Payday Loans Initiative campaign, stated that payday loan reform, like this cash advance Reform Act]], is nothing but « window dressing. » 9

The Party that is democratic of endorsed the Stop pay day loans effort and argued that payday advances are « by definition predatory and benefit from economically susceptible Arizona families by trapping them in unending rounds of financial obligation. »

Opposing arguments

Main arguments proposed versus Proposition 200 included:

  • Prop. 200 doesn’t lengthen the minimum loan term of five times, hence maintaining pay day loan services and products at 391% APR or worse
  • Electronic use of debtor accounts offers payday lenders debit that is unfettered to consumer bank reports and facilitates overcharging
  • The payment plan supply limits customers’ straight to request a payment want to when per 12 months.
  • « The argument that closing loan that is payday could be a blow into the economy is similarly spurious. It may assist the economy on the street, but that doesn’t mean it would make our lives any better if we legalized the sale of heroin and let merchants hawk it. A business that thrives on keeping customers bad will not assist the economy. » 10


Pay check loan providers failed to disappear completely so effortlessly after the measure’s beat, while they attempted to persuade lawmakers to allow them stay static in company through the autumn of 2009. Relating to reports, the industry hired state that is former General give Woods to represent them inside their efforts. Based on Woods, after learning a proposition because of the industry, he was convinced there clearly was destination within the state of payday loan providers. 11

Way to the ballot

On 23, its supporters turned in more than 265,000 signatures to the Arizona Secretary of State june.

Ballot name lawsuit

Arizonans for Responsible Lending filed case on the ballot language. Based on the lawsuit, voters might unwittingly approve a limit of 400 per cent rates of interest for pay day loans in the event that Secretary of State would not explain the descriptive language of Proposition 200 from the November’s ballot.

Superior Court Judge Sam Myers ruled Aug. 27, 2008, that Secretary of State Janice Brewer didn’t have to make clear the language. Judge Myers stated that the description associated with ballot measure drafted by Secretary Brewer ended up being technically accurate, and therefore with just 50 terms to spell out complex problems, alternatives need to be made.