Tell Arizona Lawmakers


Don’t open the doors to more predatory lending!


Pawnbroker loans under HB 2240 have gotten more costly during the legislative process!


  • The bill increases the total that a pawnbroker can charge for the combined interest rate and service charge to 20% of the amount loaned each month, plus the amount of any fee or tax imposed by a governmental agency, which will vary throughout the state.


  • 20% of the loan times 12 months means these loans have an annual percentage rate (APR) of 240%!  APR is the universally recognized cost for loans required to be disclosed by federal law. Add on the governmental fee or tax and the APR is even higher.


  • This very high APR is on a loan that is secured by the consumer’s goods.  In order to get a loan the consumer must put up their personal property, such as a wedding ring, watch or gold necklace, as collateral.  The pawnbroker decides how much the consumer’s property is worth and how much they, as a professional evaluator of the value of goods, will loan on the item.  If the consumer fails to pay off the loan, the pawnbroker becomes the owner of the goods.


  • The loans initially are for 30 days followed by an undefined 30 day “grace period” and can be renewed for 30 additional days for a total of 90 days. (The wording of the bill is not clear whether there can be unlimited renewals.)  These 90-day loans are for the same time period under current law.


Tell Arizona Lawmakers 

This bill harms consumers. Please Oppose Senate Bill 1306 !


SB 1306 is a debt collector and debt buyer bill that will harm consumers.


The bill states that if the statute of limitations (SOL) has not expired on a debt,  any payment of any amount made by anyone toward the debt “begins anew” the SOL  from the date of the last payment.  The bill applies to all payments made since January 1, 2012 -over 8 years ago!!!!!




        As of March 1, 2020, Ms. Smith has not made a payment on her credit card for almost 5.8 years.  A few years ago, the credit card company sold the debt to a “debt buyer” for pennies on the dollar. The first debt buyer sold the debt to a second debt buyer who sold the debt to another debt buyer. The third debt buyer calls the consumer and encourages the consumer to make ANY payment, even one as small as $5. 

        The debt buyer may give any number of reasons for the small payment. The debt buyer may threaten her with a lawsuit, garnishment or even jail.  The consumer makes the $5 payment. Under SB 1306, this small payment just extended the SOL for another SIX years.  

        This bill encourages a perpetual debt trap for these debts and encourages dishonest collection practices to the detriment of companies who do not engage in such practices. 


Who Does SB 1306 Benefit?  


The bill primarily benefits debt buyers, the vast majority of which are companies not located in Arizona. This bill takes money from Arizona consumers and sends the money to companies out of state. 




The Arizona Legislature
in 2020


Arizona’s 54th Legislature, Second Regular Session convened on Monday, January 13, 2020.


2020 Progress of Bills


Of 1,731 pieces of legislation lawmakers introduced this year, only 58 became law at the time the Legislature suspended the session.


As of Monday, March 23 both the House and Senate have adjourned until April 13th. The adjournment came after the House passed the Senate’s $11.8 billion budget and $50 million package to mitigate the economic impact of COVID-19.


In accordance with the Public Health Emergency, on Monday March 16 all Committees are suspended until further notice.


Senators introduced 682 bills before deadline on February 5, more than they have at any point in the past two decades.

2020 CEI Bill Tracking Datasheet


HB2240 (Kern, R-20)

Alters the pawnbroker statute to authorize even more high-cost loans to Arizonans who cannot afford to pay them off

  • Passed out of the House with votes on party lines and sent to the Senate on February 27.


SB1306 (Leach, R-11)

This is a debt collector and debt buyer bill that will harm consumers.

  • Passed out of the Senate and sent to the House on February 13.