The Arizona ballot initiative, titled the Predatory Debt Collection Act, is now fully in effect as law, a pro-209 lawyer said.
A Maricopa County Superior Court judge has denied an effort to overturn Arizona's Proposition 209, a statewide ballot measure that backers billed as protecting consumers from bankruptcy and poverty from medical debt.
However, a coalition of debt collectors who challenged the measure as unconstitutional signaled Thursday it will appeal the ruling.had been on hold since Dec. 7, putting some rules over debt collection in Arizona in question. Maricopa County Superior Court Judge John Blanchard issued a temporary restraining order on Dec. 7 and gave both sides a chance to make arguments during a Dec. 16 evidentiary hearing.
In a statement Thursday, Healthcare Rising spokesperson Rodd McLeod applauded the ruling. Arizona voters wanted to lower interest rates on medical debt and protect people's homes, he said. At issue in the lawsuit was a"savings clause" that says,"this act applies prospectively only," and that it does not affect"rights and duties that matured before the effective date of this act, contracts entered into before the effective date of this act, or the interest rate on judgments that are based on a written agreement entered into before the effective date of this act.
"In essence, plaintiffs’ request for declaratory relief is asking the court to change the words of the law to confirm a more favorable interpretation of Prop 209. It is not the function of the courts to rewrite statutes," Blanchard wrote.
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