Bill introduced to bring back payday-style loans

PHOENIX (KSAZ) - Arizona voters chose to stop payday loans in 2008. Now an Arizona State Senator wants to bring them back, under a different name called "flex loans."

A flex loan bill making it's way through the Arizona State Legislature would create a produce very similar to outlawed pay day loans.

"You can change the name, you can put lipstick on a pig, the bottom line is it's still a pig," said Rep. Debbie McCune-Davis.

"That's why a $2,500 loan over the course of 24 months grows to an amount of $10,000, and they call that help?" said Rep. McCune-Davis.

The sponsor of the bill, Sen. John Kavanagh disagrees. He says these loans would offer options to people in trouble.

"It's giving people who have no choice and are desperate an option," said Sen. Kavanagh.

Kavanagh says Flex loans are meant to be bridge loans.

"And what is the alternative of not getting the car fixed and losing your job? Going to a loan shark and having your legs broken when you don't pay selling drugs, going into prostitution. This is an option, and it helps a lot of people," said Kavanagh.

Residents have mixed opinions on the loans.

"I think I had one or two in my life, it worked out great, it worked out fine," said Daren Newsome.

"They're getting rich off poor people, way too much interest, way too much," said another resident.

Kavanagh's bill SB1316 was sent to the Senate on March 21 where it will be scheduled for a vote.