Protect Our Arizona Urges Arizona Voters to Vote No on Proposition 209
The Political Action Committee is urging voters to reject a proposal on this year’s ballot that would lead to limited access to credit and higher rates.
— Amber C. Russo, spokesperson for Protect Our Arizona
PHOENIX, ARIZONA, USA, October 24, 2022 /EINPresswire.com/ — Protect our Arizona, an Arizona political action committee, is urging voters to oppose Proposition 209 as an attempt by California’s special interests to enact “extreme anti-corporate policies.” The group warns that the proposal is misnamed the “Predatory Debt Collections Protection Act” because it does not address predatory debt collection practices by bad actors. Proposition 209 would, in fact, make it harder for Arizona residents to get credit, harder for Arizona businesses to collect their debts, and dramatically raise interest rates on debts to the consumption.
Financial support for the proposal in the Nov. 8 ballot comes primarily from a California union that says the measure protects consumers from bankruptcy and financial hardship caused by medical debt. If passed, the measure would reduce maximum interest rates on medical debt for state residents and increase the value of debt collectors’ protected assets with respect to all debts. Protect Our ARIZONA notes that the proposal actually harms consumers.
Amber C. Russo, spokesperson for Protect Our Arizona, explains the impact this proposal could have on the middle class in Arizona: “Arizonans should prepare for a higher cost of credit and rising inflation in our state. . A good example of the potential impact on the middle class can be seen in the housing market. Landlords who are unable to collect money owed to them by “bad” tenants pass on the cost of damages and broken leases to “good” tenants in the form of higher rents. Just as a big box store raises its prices to combat the expense associated with shoplifting, “everyone” will pay the price for “some”. In fact, we are likely to see even fewer rentals on the market as the risk of renting without recourse outweighs the financial benefits for landlords.
Additionally, Protect Our Arizona urges Arizona voters to reject Proposition 209 because it:
Creates a $51,000 per income threshold for garnishments, which will require consumers who earn more than the income threshold to make up the difference. Arizona’s median income is $51,000 a year, which means half of Arizona’s workers won’t have to pay their debt and the other half will have to cover the cost.
Significantly reduces Arizona residents’ access to consumer credit. The measure would require Arizona consumers to make much larger down payments to acquire credit for necessities like vehicles and appliances.
Increases the amount Arizona consumers will pay for credit, in the form of much higher interest rates that lenders will have to charge to make up the difference with consumers who have defaulted on their debt. This is necessary because banks and lenders will suffer huge financial losses for existing loans already made that would become uncollectible under the proposal. Judgment creditors who have already won cases will see an immediate and permanent decline in collections.
Protect our Arizona
Amber C. Russo