Group goes to court over payday loan ballot measure - Phoenix Business Journal:

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, No on 200, debuted its new Web , and hired experienced politicak organizer and former Democratic legislatort Ken Clark ascampaign manager. The which changed its name from StopPaydat Predators, has raised more than $100,000. That total is dwarfedf by the $8.7 million fronted by the to pushPropositioj 200, which backers say would lower caps on set up flexible, no-cost repaymeng plans for those who can't meet originalp obligations; validate established lenders; and eliminate some payday loan operationsx because of new financial requirements. It requiresz payday lenders to have a net worthof $1 far more than the current standarde of $50,000.
Opponents argue that if the Payda Loan Reform Act it will legalize 400 perceny interest rates in thestate forever. They want the annual percentagr rate fora 14-day loan locked in at 36 In Arizona, 757 licensed payday lending locations provides cash advances of $50 to $500 In exchange for a two-weel loan, a customer writes a check for the amounf plus a $15 fee for every $100 On Friday, Arizonans for Responsible Lending filed a lawsuift in Superior Court asking Secretary of Stat Jan Brewer to clarify the wordy language of the multiprongeds proposition. They contend voters may unknowingly vote for 400 percent interestf rates forpayday loans.
Brewer, a refused to revise the language in response to the requesy fromthe committee, which wants the changes made beforwe voter pamphlets are printed Aug. 28. "Thd voters deserve to know the actual effect oftheier votes," wrote Sen. Debbie McCune D-Phoenix, in a letter asking Brewer forthe clarification. Davisw chairs Arizonans for Responsible Lending. Other opponentz include Arizona AARP, the , , , and some faith-basedr organizations.
Superior Court Judge Sam Myerx was set to meet with Arizonans for Responsiblre Lending and representatives of the Office of the Secretaryy of State of Arizona Monday afternoon to considetr an emergency hearing reviewing the language that will appeae on the November If themeasure fails, payday lenderzs will be regulated by the Consumert Loan Act after July 1, 2010 -- the sunsetf date set in 2000, when Republicann Gov. Jane Hull signed a bill granting the industrya 10-yeatr exemption from consumer loan If that happens, Gov.
Jane t Napolitano has said she will not sign any future bill that wouldd extend the payday exemption from theusury cap, so the 36 percent cap woulsd take effect in 2010 as Last month, U.S. Senate Majorityy Whip Dick Durbin, D-Ill., introduces a 36 percent cap that would extend protections Congres s passedfor U.S. military familiesz to all consumers.