PHOENIX – Community groups, including AARP Arizona and the Arizona Community Action Association, are urging state senators to reject a bill allowing increased interest rates and fees on small consumer loans.

House Bill 2526 would allow loans up to $3,000 to carry an interest rate of 36 percent, and would permit an origination fee of $150, more than double the current limit.

At the same time, State Rep. Debbie McCune-Davis says the bill provides no assurance that borrowers would actually be able to repay those loans.

"Without that assurance, the loans that are made are potentially predatory, and the consequence is that it puts people in a cycle of debt, which gives them no opportunity to improve their lives, their credit or their future," she maintains.

The bill reportedly is being pushed by a single hedge fund-owned loan company and already has passed the Arizona House. It is currently being considered by the Senate.

State Sen. Steve Farley says voters rejected an industry-backed ballot measure six years ago that would have allowed payday loans exceeding 400 percent annual interest.

"Arizonans have spoken at the ballot box, both in electing people who are against payday lending and other types of predatory loans, and in banning predatory lending at the ballot in the initiative process, and they've spoken overwhelmingly time and time again," he says.

Cynthia Zwick, director of the Arizona Community Action Association, says lenders already are collecting additional fees from vulnerable borrowers that push loan costs well above the legal limit for interest rates.

"The bill is not about providing more loan choice to vulnerable Arizonans,” she says. “These loans are currently available, but at a maximum amount of 24 percent interest.

This bill is about higher-interest loans and higher costs for low-income borrowers versus higher profits for the lenders."

Other groups opposing the bill include the Southwest Center for Economic Integrity, the Morris Institute for Justice and Citizens for a Better Arizona.





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The state of Washington has launched an online system for tracking food poisoning cases.

The Washington State Health Department has opened its Foodborne Illness Notification System for filing complaints about food safety. Bill Marler, a food-safety lawyer in the state, said the system will rely on data to pinpoint potential food-safety hazards.

"If you get more and more people utilizing these services," he said, "just the sheer volume of the data will make it more useful because you get more angles to look at."

The Health Department says the system is anticipated to help with early detection of diseases, illness prevention, proactive safety measures and educational opportunities. The state has noted that one in six Americans suffers from food poisoning each year.

Marler said he believes the data collection will be helpful, but also notes that it isn't a panacea for stopping outbreaks. He said listeria is a good example: the period between consumption and onset of illness is between three and 70 days.

"I'm not sure I can remember what I ate three days ago, let alone what I ate 70 days ago," said Marler. "So, a lot of this analysis is sometimes flawed by people's memories and the incubation periods."

Marler added that listeria is also a pressing example because of the outbreak of it in deli meat. According to the Centers for Disease Control and Prevention, two people have died and 28 have been hospitalized from the current outbreak across the country, although no cases have been reported in Washington state.


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Big changes are imminent in the way homes are bought and sold, as the new forms for transactions in California come out today.

The forms are linked to the proposed legal settlement by the National Association of Realtors, which ends the long-standing practice of having a home seller's agent pay a commission to the buyer's agent. It benefited buyers who may not have saved up enough money to pay their agent.

George Lopez, a real estate agent in Indian Wells, explained buyers will now have to negotiate a separate contract to hire and pay their own agent.

"Even with these changes, a buyer can still purchase a home without having the money to pay their agent," Lopez explained. "The general public needs to understand that the real estate commissions have been, and will always be, negotiable - and that if they don't have money to pay their agent, they can still potentially negotiate it in their sale."

The lawsuit contended the old way of selling homes tended to drive up costs, as buyers' agents had more incentive to steer people to sellers willing to pay a higher commission. The changes are intended to empower homebuyers to negotiate for a better deal.

Lopez thinks most sellers will still offer to pay a real estate broker, rather than risk losing out on a big chunk of the prospective buyer pool. But it will have to be negotiated in the offer, as commissions will no longer be stated in the Multiple Listing Service. The changes also mean buyers' agents cannot just meet prospective clients "on the fly" anymore, to go check out a home for sale.

"You have to meet me at the office; we have to have a meeting," Lopez pointed out. "We have to have an agreement in place that said that you're hiring me, or I can't show you any homes."

The new forms real estate agents use to complete transactions will take effect nationwide on Aug. 17.


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A new Virginia law protects residents from utility shutoffs in extreme weather.

The law prevents utility company shutoffs when temperatures are at or below 32 degrees and at or above 92 degrees. It also prevents shutoffs during states of emergency in response to public health emergencies. Virginia was one of 34 states with a shutoff moratorium during the pandemic.

Kajsa Foskey, economic justice outreach coordinator for the Virginia Poverty Law Center, said enacting this law cleared up some misconceptions.

"Most folks already thought that utilities couldn't shut them off on a day when it was too hot or too cold outside," she said. "So, what we've really done is just created some common-sense foundational protection so that all utility customers across the state know what their rights are."

Despite having some of these shutoff guidelines as unwritten rules, utility companies pushed back, saying it didn't allow them flexibility. Foskey said she thinks the state can build on this by including elements that didn't become law. This includes requiring data collection from utilities about who is being shut off, the frequency, reasons, and the amounts owed. She said this can help craft solutions for people facing shutoffs.

Rising utility prices concern advocates since this increases shutoffs. More than 750,000 Virginia families are energy cost-burdened, meaning they spend 6% of their income on utility bills.

Foskey said another removed part of the law would have reduced financial barriers to reconnection.

"When they try to get reconnected," she said, "not only do they have to pay that past-due amount that they couldn't afford to pay, they now also have to pay reconnection fees, late fees, security deposits, things that really just make the barrier to getting reconnected very high."

She added that this can prevent people from being able to afford everyday essentials such as food or rent. However, the new law has a provision for customers who received state energy assistance in the past year. They're eligible for having their deposit capped at 25% of what they previously owed to be reconnected, but this can only be used once every three years.