Revealing Truth About Predatory Payday Lending

Anyone who is still undecided about how to vote on Proposition 200, which would perpetuate payday lending in Arizona, should attend a forum this evening that will explain the pitfalls of payday loans for consumers.

The forum is one way that consumer groups, activists and churches opposed to payday lending are fighting against the initiative and its well-bankrolled supporters. Payday lenders have been using their funds in recent weeks to send fliers to homes under the guise of a consumer organization in order to deceive voters about the initiative.

"At the forum, folks can learn the truth about payday lending, unlike what they have been receiving in the mail," said David Higuera, political director for Arizonans for Responsible Lending, No on 200.

"We're trying to spread the know-ledge of why payday lending exists in Arizona, how it traps people in debt and what the faith community and nonprofit community are doing about it."

While payday-loan opponents may have public sentiment on their side, the industry is spending a great deal of money in an effort to sway voter opinions.Howard Fischer of Capitol Media Services reported in Tuesday's Star that payday lenders have so far raised $11.6 million for their Yes on 200 campaign, far and away the most of any initiative campaign this year. Conversely, payday-loan opponents have raised $125,000.

We recently received a flier from a group called the Arizona Community Financial Services Association. Don't think for a second this is a grass-roots consumer organization. The association is registered as a lobbying group in the state and its two principals are Phoenix lawyers Mario Diaz and Lee Miller. The real grass-roots effort is taking place on the other side, with nonprofit groups, faith communities and a handful of politicians leading the charge against payday lenders.

Earlier this month, the Arizona Ecumenical Council, which represents 18 Christian denominations and various organizations throughout the state, adopted a resolution in opposing to Prop 200.

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Source:
http://tucson.com/