Arizonans on Nov. 8 overwhelmingly approved reducing the cap on medical debt interest rates, but a judge is preventing the measure from fully taking effect.
By Stephanie Innes || Arizona Republic
Arizonans overwhelmingly approved ballot Proposition 209, which reduces the maximum interest rate on medical debt, but a judge has halted the measure from taking full effect, at least for now.
Maricopa County Superior Court Judge John Blanchard on Wednesday afternoon signed a temporary restraining order preventing enforcement of all Proposition 209’s provisions after several plaintiff groups, including the Arizona Creditors Bar Association, filed a civil action against the state.
The lawsuit contends the ballot initiative is unenforceable because of too much vagueness and ambiguity. The plaintiffs say Proposition 209 violates both the U.S. and Arizona constitutions.
Plaintiffs say the initiative is unclear about whether its provisions apply to old debts, or only to debts incurred after Proposition 209 takes effect. The temporary restraining order prevents cases from an action incurred before Dec. 5 that have not gone to collections yet from receiving protections under the act. But debts incurred after Dec. 5 would be protected by Proposition 209’s provisions, the order says. An evidentiary hearing is scheduled Dec. 16.
Rodd McLeod, a spokesperson for Proposition 209 supporters from the group Healthcare Rising, said the plaintiffs “need to give it a rest and accept the will of the people.”
Voters supported the measure by a wide margin, 72% to 28%, in the Nov. 8 election.
Proposition 209 — the Predatory Debt Collection Act — was supposed to take effect Dec. 5 after the statewide canvass and proclamation adopting the Nov. 8 general election results.
