The Arizona Chamber of Commerce & Industry and the Greater Phoenix Chamber of Commerce have banded together to express their opposition to the proposed Predatory Debt Collection Protection Act.

“When lenders can’t collect outstanding debts, they’ll pass their losses onto their other customers, which means higher interest rates for everyday Arizonans,” Arizona Chamber President and CEO Danny Seiden told Chamber Business News. “At a time of sky-high inflation, do we really want even higher interest rates?”

According to an article by Chamber Business News, proponents of the measure believe it will help protect Arizonans from unfair collection practices, protect their assets from being sold to pay medical bills, limit the amounts of wage garnishment and lower interest rates for debts. Others, however, believe the measure would have far-reaching implications for all types of debt financing.

Seiden said the potential dangers include businesses turning down customers over credit.

“What’s worse, thousands of Arizonans will lose access to previously available financing,” he said. “Left without the ability to collect on their loans, lenders will simply stop doing business with hardworking Arizonans who need access to funds the most, leaving these potential customers unable to get credit to buy a car, rent an apartment or buy a house.” 

Todd Sanders, president and CEO of the Greater Phoenix Chamber, said the consequences of the measure would be dire.

“The Chamber is opposed to a new initiative that would make it harder for lenders to collect on debts,” he told Chamber Business News. “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,” Sanders added.

According to the article, Arizona’s inflation rate of 11% is the highest in the nation, and the credit act could make that rate rise nationwide.

“We are working to protect the interests of Arizona small businesses and our community from another attempt by a California political organization to remake Arizona into their image,” Amber Russo, a small business owner and spokesperson for opposition committee Protect Our Arizona, told Chamber Business News. “Arizonans have been hit hard by the current economy and taking away access to credit will result in even tougher times for hardworking families.”