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Opinion by Andrea Dalessandro

In 2000, many legislators were hoodwinked into allowing payday loans in Arizona. The law is set to expire, or "sunset," in 2010 but Senate Bill 1239 seeks to postpone the ban until 2012. The leadership of the Legislature is attempting to delay solving the problem.

Payday loans are legalized loan sharking with fees that equal interest of 400 percent to 500 percent a year. My ethical, moral and economic values tell me that payday loans are not a reasonable credit option. If you are not sure about that, do a Google search for the word "usury."

Most voters of every political persuasion know that payday loans reflect negatively on Arizona. People who desperately need money find themselves in a worse financial situation after two weeks — the term for most payday loans. Most are trapped. A very small percentage of lucky ones learn their lesson after one payday loan and do not ever return.

The business model of payday-loan businesses is based on the fact that they want the fees and interest associated with rollovers of existing loans. Their goal is to have lasting relationships with their clients.

Payday loans not only harm borrowers, they drain money from our regional economy, often to out-of-state interests. Every dollar wasted on payday loan fees could be spent at local stores and businesses, contributing positively to our economic development.

Payday loans are predatory lending at its worst and take advantage of working people with limited resources. Seniors and the disabled are emerging as the new targeted customers, according to a Feb. 12 article in The Wall Street Journal.

Since I started collecting signatures in August to stop payday lending, I have met working people financially trapped by payday loans. Some have several loans with different payday-loan businesses.

The leadership of the Arizona House has consistently prevented reform bills from being heard. Reform measures have included lower interest rates and fees, a limit on rollovers and a registry to prevent multiple loans. When bills are offered in committee, the well-financed lobbyists swoop down on the legislators and many of them disregard the will of the voters.

State Rep. Marian McClure, R-Tucson, has been an indefatigable opponent of predatory lenders and is sponsoring the Stop Payday Loans initiative.

McClure is termed out of her House seat after this year and we will lose her as an advocate in the Legislature. I am a strong advocate against payday loans and I will take up McClure's sword to continue her fight against these and other predatory lenders.

I encourage readers to visit the Stop Payday Predators Web site (www.stoppaydaypredators.com) for more information. Please donate or volunteer to circulate petitions for the Stop Payday Loans initiative, and please sign the petition.