Religious leaders unite to oppose Prop 200

Whenever priests, ministers and rabbis find common ground, it makes sense to listen to what they have to say. In Arizona, members of all these groups have come together to renounce and oppose Proposition 200.

Prop 200 is labeled the Payday Loan Reform Act, but the “reforms” originate from the industry itself. What’s more, payday lenders have paid more than $13.3 million to convince you to approve the measure. This is the fox building, not just guarding, the henhouse. What’s more, the industry is trying to outfox you by creating the illusion that some public advocates somewhere are behind the measure.

The overarching intent of Prop 200 is to repeal a sunset provision in the current statute authorizing payday loans. Under the provision, payday lenders in 2010 will return to the 36 percent cap rate that applies to all other types of lenders in Arizona. If voters pass Prop 200, lenders will be permanently authorized to charge annualized percentage rates approaching 400 percent.

The religious community of Arizona is calling this practice for what it is – usury, the lending of money at an exorbitant rate of interest. Religious leaders oppose it because it victimizes the poor, who enter into these loans only to find themselves saddled with high interest rates and ongoing payments they can’t escape. The U.S. Congress made sure our soldiers would not fall victim to the practice by prohibiting payday lending to members of the military.

Through the Arizona Ecumenical Council, Christians of many persuasions, as well as the Board of Rabbis of Greater Phoenix, have spoken out in opposition to the measure. Learn more about what they have to say at www.200isnoreform.com .

In the spirit of this multifaith effort, make sure you study this initiative carefully, and help vote it down on election day.