Resolution regarding 2008 Ballot Initiative, Prop 200
Whereas the Bible has spoken clearly about loaning money with interest as in Exodus 22:25-27, Leviticus 25:35-37, Deuteronomy 23:19, and Psalm 15:5 and
Whereas the State of Arizona has already made it a law that consumer loans cannot exceed 36% APR (Annual Percentage Rate), and
Whereas Payday Loans primarily serve people who are financially insecure, and
Whereas the Payday Loan industry secured an exemption for themselves to allow 410% APR until the year 2010, and
Whereas the 2008 Ballot Initiative numbered 200 entitled “Payday Loan Reform Act” will not reform this practice because the initiative will lower the interest rate only to 391%APR and it will remove the sunset clause so the industry can continue to do business without time limits, and
Whereas the churches of the Arizona Ecumenical Council encourage all people of faith to remember the care and concern God has expressed for the poor, and
Whereas our church leaders speak out against economic injustice, and
Whereas we wish to promote laws that do not take advantage of the poor,
Therefore, be it resolved that the Arizona Ecumenical Council encourages its member churches and all Arizona registered voters to vote No on Proposition 200.
Members of the Executive Board
Bishop Minerva Carcaño, United Methodist Church, President, Arizona Ecumenical Council
Bishop Kirk Smith, Episcopal Diocese of Arizona, Vice President, Arizona Ecumenical Council
Rev. John Newson, American Baptist Church of the Southwest, Secretary, Arizona Ecumenical Council
Mr. Edward Davis, Treasurer, Arizona Ecumenical Council
Fr. Michael Diskin, Roman Catholic Diocese of Phoenix, Past President, Arizona Ecumenical Council
Dr. Jerrye Champion, African Methodist Episcopal, Chaplain, Member at Large, Arizona Ecumenical Council
Rev. Ron Faus, Church of the Brethren and Arizona Mennonite Church, Member at Large, Arizona Ecumenical
Deacon Maeve Johnson, Episcopal Diocese of Arizona, Member at Large, Arizona Ecumenical Council
Dr. Ida Malian, Armenian Apostolic Church, Member at Large, Arizona Ecumenical Council
Rev. José Olagues, Presbytery of Grand Canyon, Member at Large, Arizona Ecumenical Council
Dr. Terri Traaen, Evangelical Lutheran Church in America, Member at Large, Arizona Ecumenical Council
Mr. Greg Foraker, Episcopal Diocese of Arizona, Member at Large, Arizona Ecumenical Council
Fr. James Hobert, Roman Catholic Diocese of Tucson, Member at Large, Arizona Ecumenical Council
Mr. Richard Reckmeyer, Chair, Public Policy Commission, Arizona Ecumenical Council
Dr. Barry Sargent, Roman Catholic Diocese of Phoenix, Co-Chair, Theological Dialogue Commission, Arizona Ecumenical Council
Dr. Barbara Keats, Roman Catholic Diocese of Phoenix, Co-Chair, Theological Dialogue Commission, Arizona Ecumenical Council
Rev. Doug Bland, Christian Church in Arizona (Disciples), Chair, Earth Care Commission, Arizona Ecumenical Council
Mr. Don Morse, United Methodist Church, Chair, Ecumenical Prayer and Worship Commission, Arizona Ecumenical Council
Rev. Jan Olav Flaaten, Evangelical Lutheran Church in America, Executive Director, Arizona Ecumenical Council
Additional Signatories
Rev. Dr. John Dorhauer, Conference Minister, United Church of Christ
Rev. Ken Moe, Executive Presbyter, Presbytery of Grand Canyon
Board of Rabbis of Greater Phoenix
Rabbi Arthur Lavinsky of Beth El Congregation (Phoenix)
The Issue
See below and go to the website below for more of the issue, personal stories, news clips and more:
The so-called Payday Loan “Reform” Act would allow the payday lenders to bleed hard-working Arizonans with 400% interest rates. Forever.
The payday lending industry doesn’t want you to know it, but when it comes to protecting your pocketbook at the ballot box this November, “no” will mean “yes.”
A “NO” vote on the payday industry’s Prop 200 will mean “yes” to capping payday loans at 36% interest once and for all.
They’re Trying to Buy Your Vote
Out-of-state payday lenders are trying to buy this election. They’re attempting to protect the $140 million a year they take from Arizonans in fees stripped from trapped borrowers. They already have poured $9 million into their industry-written ballot measure – which would legalize predatory interest rates in Arizona forever.
With Prop 200, the payday lenders are attempting to repeal the Arizona law that otherwise would force them to cap payday loan interest rates at 36% beginning in 2010.
Payday Loans Trap Borrowers
Payday loans, which charge 400% interest, are structured to trap the borrower. Payday loans trap borrowers in long-term debt based on short-term promises, with the average borrower needing to pay back nearly $800 on a $300 loan, after multiple loan renewals. That’s why to date, 15 states and the District of Columbia have ended predatory payday loans at triple-digit interest rates, enforcing interest caps of 36% or less.
In 2006, Congress outlawed payday loans above 36% interest to members of the military, a measure supported by both John McCain and Barack Obama.
Don’t Believe the Loan Sharks
Like their business, their ballot measure is built on deception. They want voters to think Prop 200 would reform payday lending. In reality, Prop 200 would allow them to charge 400% interest rates forever AND gain electronic access to borrowers’ checking accounts! That’s what they’re NOT telling you about their so-called “reform.”
It’s No Reform At All!
Prop 200 would bring us 400% interest rates. Forever.
Defeating Prop 200 restores the Arizona Consumer Loan Act, capping interest rates at 36%. Period.
Join the Arizona AARP, Greater Phoenix Chamber of Commerce, Chandler Chamber of Commerce, Valley of the Sun United Way, Children’s Action Alliance, Arizona Consumers’ Council, Arizona Community Action Association, Catholic Community Services of Southern Arizona, Jewish Council for Public Affairs, Coalition of Religious Communities, WESTMARC, Desert Mission Neighborhood Renewal, Southern Arizona Leadership Council, Little Chapel of All Nations, PAFCO and many others in voting NO on Prop 200 this November.
NO on 200: It’s No Reform At All!
© 2008 Paid for by Arizonans for Responsible Lending, No on 200.
Senator Debbie McCune Davis, Chair.
Major Funding by United Food and Commercial Workers Local 99, Phoenix AZ,
Center for Responsible Lending, Durham NC,
Service Employees International Union, Washington DC,
and Strategic Issues Management Group, Tucson AZ;
Additional Support from Arizona AARP