Bill Critics Say Would Set Up 'Predatory Loans' To Go Before Senate Panel
A state Senate panel this afternoon is hearing a measure that would set up what critics are calling “predatory” loans.
The strike-everything amendment to an unrelated bill would authorize “Consumer Access Line of Credit” or “Calc” loans, which would include daily fees of up to 0.45 percent of the loan’s balance.
According to an analysis by the Center for Responsible Lending, a borrower who takes out a $2,500 loan would still owe almost $1,000 after paying the loan back for eleven months.
Cynthia Zwick is executive director of the Arizona Community Action Association and one of those critics calling this proposal a debt trap.
HB 2496 is set to be debated this afternoon in the Senate Appropriations Committee.
We’ve also reached out to the provision’s sponsor for an interview; through a spokesman, she’s so far declined, citing scheduling — the invitation remains open.