FOR IMMEDIATE RELEASE:
Date: July 6, 2022
PHOENIX – The Greater Phoenix Chamber urges Arizona voters to “decline to sign” the Predatory Debt Collection Protection Act ballot initiative petitions. If passed by voters, the proposed measure would have a devastating impact on business in Arizona.
While proponents of a California ballot initiative claiming to protect consumers from predatory debt collectors cite the potential benefits of the legislation, consumers should be aware that the measure contains provisions that could make it more difficult for lenders to collect on all debts, not just medical debts. While the intention of the ballot initiative may be to protect consumers from unfair debt collection practices, the language of the measure could have unintended consequences that make it more difficult for lenders to collect on legitimate debts.
Should a new initiative pass that absolves many people of their debt obligations, it would have far-reaching and negative consequences for both individuals and the state of Arizona. While people would no longer have to worry about repaying creditors, this would effectively dry up the credit market, as lenders would have no way of recouping their losses. Low-income earners would be impacted most, as they would have the hardest time accessing the credit market. In addition, the state would suffer from a loss in tax revenue, as businesses would be unwilling to invest in an economy where they can’t collect on debts.
The Chamber believes that, while the intention of the ballot initiative may be to protect consumers from unfair debt collection practices, the language of the measure could have unintended consequences that make it more difficult for Arizonans to have access to credit, exacerbating the state’s existing affordability crisis. The Chamber is not alone in its opposition to the ballot initiative. A broad coalition of business, civic, and community leaders have come out against the measure, including the Arizona Bankers Association and the Arizona Retailers Association.
“The Chamber is opposed to a new initiative that would make it harder for lenders to collect on debts,” said President & CEO Todd Sanders. “This could make it more difficult for people in Arizona to get access to credit and amplify the current housing affordability issue, making it more difficult for people to buy homes and start businesses in Arizona. The passage of this initiative would be a disaster for Arizona and should be avoided at all costs.
About the Greater Phoenix Chamber
Representing 2,400 businesses across the Greater Phoenix region, the Greater Phoenix Chamber promotes regional prosperity by serving as a catalyst for economic vitality and strong communities. The Chamber pursues this mission by collaborating with business, political and community leaders to grow the regional talent pool, create a regional approach to economic development, and drive a pro-Arizona agenda.