What happens when a state implements a 36% interest rate cap?

Illinois’s Predatory Loan Prevention Act (PLPA)

The Impacts of the State’s 36% Rate Cap | One-pager, Woodstock Institute, January 2024

The Impacts of the State’s 36% Rate Cap | First edition, Woodstock Institute, January 2024

 

The Sky Doesn't Fall: Life After Payday Lending in South Dakota

Press Release | Center for Responsible Lending, January 13, 2020
CRL Report | Charla Rios, Diane Standaert, Yasmin Farahi, CRL, January 2020

 

After Payday Loans

Consumers Find Better Ways to Cope with Financial Challenges | NCLC, August 2021

Why Cap Interest Rates at 36%? | NCLC, August 2021

Medical Credit Cards and Financing Plans

Medical credit cards may lead patients to overpay for their health care, Democrats warn

by Ken Sweet, Associated Press | Tucson.com (and elsewhere), July 5, 2023

 

What should I know about medical credit cards and payment plans for medical bills?

Informational article from the CFPB | May 8, 2023

 

Summary and research report from the CFPB | May 4, 2023

"This report highlights some of the risks to consumers of using financing products such as medical credit cards and installment loans to pay for medical procedures and services."

Earned/Early Wage Advance (EWA) Programs

2021 Earned Wage Access Data Findings from the California Department of Financial Protection and Innovation | Analysis completed Q1 2023

"The average annual APR was 334% for tip companies and 331% for the non-tip companies."

 

Early wage access products—which allow workers to access wages they have already earned ahead of the regular payday—another form of payday lending?

The Persistent Harms of High-Cost Installment Loans

The Harm Caused by Title Lending

2023 Update to Car Title Lending in Arizona

 

The Southwest Center for Economic Integrity, a nonprofit organization based in Tucson, has issued an update to their report on title lending in Arizona.

2023 Update to: "Still Wrong: Wrecked by Debt" | CEI, January, 2023

 

An update was issued in 2022.

2022 Update to: "Still Wrong: Wrecked by Debt" | CEI, March, 2022

 

2022 Video by Pastor Randy Reynolds

 

Related: I Need Cash Now, What Can I Do?  |  Wildfire AZ, 2021

The previous report on title lending in Arizona was issued in 2019.

STILL WRONG: Wrecked by Debt | CEI, August 4, 2019

Press Release | CEI, August 5, 2019

Prop 209 : The Predatory Debt Collection Protection Act - PASSES!

The ballot initiative has passed with a majority of 72% of the vote.

As reported by the Associated Press and the New York Times | Nov 10, 2022

Arizona measure could be a model for Democrats nationwide | By Megan Messerly, Politico | Oct 26, 2022

A wonky Arizona ballot measure could unlock a new path to easing medical debt | By Dylan Scott, Vox, Oct 23, 2022

The Predatory Debt Collection Protection Act [ English | Español ] helps Arizonans by protecting more of their assets and belongings from debt collectors, and limiting the interest rate on medical debt.

 

Prop 209 protects Arizona families with crushing medical debt — like mine | Anna McCallister-Nichols Special to the Arizona Daily Star | Oct 9, 2022

 

Arizona is trying to take on medical debt with a ballot initiative | The Washington Post, Sep 16, 2022

Payday Loan Debt Trap Tracker

Consumer protections for payday and car-title loans, created by the previous leadership of the CFPB after years of research, were due to take effect on Aug. 19, 2019. Now, these latter-day loan sharks will trap more borrowers in vicious cycles of debt.

 

Since former Director Kathy Kraninger sided with the sharks and turned her back on consumers, American borrowers caught in this infamous debt trap have paid fees amounting to:  (click here to see the amount)

States without Payday and Car‐title Lending Save Over $5 Billion in Fees Annually

Delvin Davies, Susan Lupton, Center for Responsible Lending (CRL) | Updated January 2017

 

"Research from the Consumer Financial Protection Bureau (CFPB) has found that the average payday consumer takes out 10 loans a year, borrowing one loan immediately after another. Similarly, the Center for Responsible Lending (CRL) found that the typical car title loan consumer will renew their loan 8 times, paying more in fees than they originally borrow. Overall, repeat refinancing is essential to generate fee revenue for both the payday and car title business models. CRL estimates that payday and car title loans cost consumers over $8 billion in fees annually."

Arizonans Oppose Predatory Lending

AZ state legislators on 2/29/2016 revived a bill to allow payday lenders to offer 204% APR "flex loans".  Senator Kavanagh’s original flex loan bill, SB1447  failed to pass in Senate finance committee hearing on a 2-3 vote.  The payday lender bill was resurrected using a strike-everything tactic that inserted the flex loan bill language into SB 1316.

Christian leaders plead for Arizona legislators to reject usurious lending bill, SB 1316

Colonel Lee Lange
US Marine Corps (Ret.):


"The U.S. Department of Defense found that predatory lending underlines military readiness. SB1447 deliberately puts our military community, including veterans and their families, in harm's way - like sending a soldier to battle without ammunition.  This Marine urges our legislators to vote no to the payday lenders' bill, SB1447"

Pastor Dr. Warren Stewart Sr. 

President of the Paradise Missionary Baptist State Convention of Arizona: 


"A vote in favor of SB 1316 is as deeply immoral. Payday lenders will trap people in modern-day debt slavery. It violates the Bible's teachings against usury and against taking advantage of the poor.  The choice before legislators is simple: God or Greed?"