Backers of a proposal allowing payday lenders to offer new high-interest loan options are making a last-ditch effort to revive the legislation.
Despite high interest loans being barred from Arizona following a 2008 voter initiative, a new proposal emerged Thursday that includes deal sweeteners to a bill that narrowly passed the House but failed a Senate committee.
In addition to lowering interest rates and reducing the length of the loans, industry representatives offered to set aside one million dollars a year over ten years to help charities provide their own low interest loans.
Rep. Mark Cardenas. D-Phoenix, doesn’t like the proposal. He says that million dollar figure is based on the money made from those who can’t borrow elsewhere-- "So it’s a tax on the poor to help pay the poor."
But other lawmakers say the focus should remain on what some argue is a needed option for those who have to get money quickly. Sen. John Kavanagh, R-Fountain Hills, said, "The bottom line is, if you're the guy whose car transmission is broke and you haven't got the cash, you're going to lose your job, you're going to be happy to have that money available."
The 2008 ballot measure outlawed payday loans with 400 percent interest rates. The new plan would allow loans up to $2,500 at 185 percent interest.