Arizona Cash Advance Reform, Proposition 200 (2021)

Arizona Cash Advance Reform, Proposition 200 (2021)

Arizona Proposition 200, also referred to as the cash advance Reform Act, had been regarding the November ballot in Arizona being a citizen-initiated amendment that is constitutional. It absolutely was beaten.

The payday-loan effort ended up being mainly supported by the payday-loan business when you look at the state, and had been 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 That measure had been withdrawn during the early June whenever maybe not enough signatures had been being gathered to qualify it for the ballot. 1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 59.6%
Yes 860,607 40.4percent

Text regarding the effort

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

Arizonans use payday lending services everyday to meet up with unexpected costs and economic emergencies. The payday financing industry is defined become eliminated and also the Arizona Legislature does not want to enact reforms to profit borrowers while preserving this crucial monetary choice. This measure brings dramatic pro-consumer reform to payday lending and protect customer option. It offers a significant price cut, removes rolling-over major to extend financing, produces a payment plan free of charge to clients that can not satisfy their responsibilities, and inhibits a debtor’s capacity to get one or more loan at any given time. 3 4

Opposing arguments

Main arguments proposed versus Proposition 200 included:

  • Prop. 200 does not lengthen the minimum loan term of five times, therefore maintaining pay day loan items at 391% APR or worse
  • Electronic usage of debtor accounts offers payday lenders debit that is unfettered to client bank records and facilitates overcharging
  • “The argument that shutting pay day loan shops could be a blow towards the economy is similarly spurious. It may assist the economy whenever we legalized the purchase of heroin and allow merchants hawk it in the road, but it doesn’t suggest it might make our everyday lives any benefit. A business that thrives on keeping customers bad doesn’t assist the economy.” 10


Payday loan providers would not disappear therefore 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 former state Attorney General give Woods to express them inside their efforts. In accordance with Woods, after learning a proposition because of the industry, he was convinced there is place in the state of payday lenders. 11

Way to the ballot

On June 23, its supporters switched much more than 265,000 signatures to your Arizona Secretary of State.

Ballot name lawsuit

Arizonans for Responsible Lending filed case within the ballot language. In accordance with the lawsuit, voters might unknowingly approve a limit of 400 per cent interest rates for payday advances in the event that Secretary of State would not explain the language that is descriptive of 200 in the November’s ballot.

Superior Court Judge Sam Myers ruled Aug. 27, 2008, that Secretary of State Janice Brewer failed to need certainly to explain the language. Judge Myers said that the description of this ballot measure drafted by Secretary Brewer had been theoretically accurate, and therefore with just 50 terms to describe complex dilemmas, alternatives have to be made.

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