Bill allowing for 164% loan fee appears dead

A majority of Arizona senators don’t support a bill that would permit a borrowing fee of up to 164 percent, Senate President Steve Yarbrough said Wednesday.

That apparently spells the end of the short-lived life of House Bill 2496, which appeared just last week in the Legislature on a strike-everything amendment. It would have authorized a consumer line of credit aimed at people who lack access to conventional lending sources.

“If someone came to me with 16 rock-solid votes, I’d move it,” Yarbrough, R-Chandler, said Wednesday. But, he added, he was far from getting the minimum 16 votes needed to pass the bill in the Senate.

Bill sponsor Sen. Debbie Lesko, R-Peoria, shrugged about its fate, saying it wasn’t a priority.

The bill won the support last week of the Senate Appropriations Committee, which Lesko chairs. It passed along party lines, with Republicans in support and Democrats opposed.

Supporters said they haven’t given up the fight.

“This is a better option than having to put up your car title at 204 percent annual interest rate,” said Matthew Benson, a spokesman for the Arizona Financial Choice Association.

Benson said supporters know they have a tough sell. But there is a demand for the financial assistance, he said.

“We know there is a need because there’s a number of people using online loans and title loans,” he said.