Goldwater Institute Weighs in Lawsuit Challenging Arizona Debt Cancellation Initiative | Arizona

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(The Center Square) – The Goldwater Institute wants to see a question removed from the ballot in the November 2022 general election in Arizona.

The Phoenix-based nonprofit thinks the legally required description of the “Protection from Predatory Debt Collection Act” is misleading and should be disqualified from the ballot under Arizona law.

The institute filed a amicus brief in a lawsuit filed by Protect Our Arizona over the matter on Monday.

“This deceitful, reckless, and immoral proposal is being sold to voters as limiting the rate of interest on borrowing to pay medical bills, so Arizonans can get affordable health care without being burdened with debt,” wrote the Goldwater. Institute in a press release. “But the proposal would inflict economic damage far beyond what voters are being told.”

The organization argues that the proposal would make it harder for lenders to recover the money they lend, even if those funds have nothing to do with medical care. He adds that by limiting garnishments and increasing the amount of home equity protected from unpaid creditors, all kinds of people and businesses, including landlords and judgment creditors, would not have options to get their money back. The organization also argues that it would discourage lending.

“If the Act were to become law, the huge losses it would inflict on lenders and creditors would impact Devastating effect on the ability of Arizonans to get loans or get housing,” wrote the Goldwater Institute. “Making it harder for lenders to collect when borrowers don’t pay will increase the cost and reduce the availability of credit. And it will make it especially difficult for low-income people to get loans and exacerbate the state’s housing affordability problem.

“But rather than explaining this to voters, the authors of the initiative have distorted the objectives and effects of the law,” he added. “No one should be able to mislead voters about ballot measures, especially special interests outside the state who do not have to suffer the consequences of dangerous public policies.”

Additionally, the Goldwater Institute added that in an era of rising inflation, Arizonans deserve an honest portrayal of the ballot initiative’s impact on the state.

Healthcare Rising Arizona, the organization leading the ballot initiative, could not immediately be reached for comment on Tuesday.

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