Proposition 209 - Predatory Debt Collection Protection Act

Summary

A "yes" vote shall have the effect of reducing maximum interest rates on medical debt from ten percent to no more than three percent per year; increasing exemptions from all debt collection for certain personal assets, including a debtor's home, household items, motor vehicle, and bank account from debt collection; adjusting exemptions from all debt collection for inflation beginning in 2024; decreasing the amount of disposable earnings subject to garnishment to no more than ten percent of disposable earnings but allowing a court to decrease the disposable earnings subject to garnishment to five percent based on extreme economic hardship.

A "no" vote shall have the effect of retaining existing laws related to debt collection.

Arguments

""Right now, medical debt collectors can jack up interest rates to 10% a year, every year, keeping families trapped in an unending debt that increases even as they continue making payments. Debt collectors can take away a family's home or car and garnish wages, all of which makes it harder for Arizona families to get out of debt, and even just to get by. A Yes Vote on Prop. 209 protects our neighbors by limiting the interest rate on medical debt and better protecting people's paychecks from garnishment. As leaders of faith, we support this effort and hope that you will join us in voting yes."" - Rev. Katie Sexton, Executive Director of the Arizona Faith Network, sponsored by Healthcare Rising Arizona, in support of Proposition 209 (Learn more)

""The Predatory Debt Collection Protection Act protects veterans - and all Arizonans - by increasing the protected value of people's homes, increasing the protected value of household goods and bank accounts, and increasing the protected value of vehicles - with all these amounts adjusted annually for inflation. It also limits wage garnishments and caps the interest rate for medical debt. This will help Arizonans avoid being trapped by debt. Politicians talk a good game about supporting veterans, but too often we don't see results. The Predatory Debt Collection Protection Act would make a real difference in the lives of many Arizona veterans who proudly served and sacrificed for their nation. We ask you to honor their services by joining us in voting YES on Prop. 209."" - Veterans Ricky J. Spann, William C. Ford, Quenterious Parnell, Gerald Bittle, Dana Allmond, Sarah Tyree, and Aaron Marquez; sponsored by Healthcare Rising Arizona, in support of Proposition 209 (Learn more)

""Medical debt is no different than other debts of necessity. If creditors have limited means to collect the money they are owed, as this ballot mandates, there are only a few things creditors can do: 1. not allow credit and insist on cash; 2. collect quickly with limited payment plans; 3. shift costs- increase the cost to make up for the uncollectible; 4. charge customers interest; or 5. push the problem to another party (outsource the receivable function out of state). If this ballot is allowed and passed, it will change AZ law in many detrimental ways that could inadvertently cause consumers (and patients) hardship. They will have less time to pay, greater costs of goods, services, money, and insurance, increased debt and limited access to credit, and interest charges on past dues."" - Craig Antico, CEO of Forgiveco PBC Inc, in opposition to Proposition 209 (Learn more)

""Unfortunately, Prop 209 is neither a sustainable nor a wise path for Arizona. By imposing a series of draconian requirements on Arizona financial services firms, Prop 209 would severely restrict the ability of Arizona consumers and businesses to access critically important lines of credit. On behalf of the over 65 banks and credit card operators located in Arizona, and over 179,000 Arizona based financial services industry employees, The Arizona Bankers Association strongly urges Arizona voters to reject Prop 209."" - Paul Hickman, President & CEO of the Arizona Bankers Association, in opposition to Proposition 209 (Learn more)

Measure Details