Prop 209

PROPOSITION 209

PROPOSED BY INITIATIVE PETITION RELATING TO PREDATORY DEBT
COLLECTION PROTECTION
OFFICIAL TITLE
AMENDING SECTIONS 12-1598.10, 33-1101, 33-1123, 33-1125, 33-1126, 33-1131, AND 44-
1201, ARIZONA REVISED STATUTES; RELATING TO PREDATORY DEBT
COLLECTION PROTECTION.
DESCRIPTIVE TITLE
THE LAW WOULD REDUCE MAXIMUM INTEREST RATES ON MEDICAL DEBT
FROM 10% TO 3% ANNUALLY; INCREASE THE AMOUNT OF CERTAIN ASSETS
EXEMPT FROM DEBT COLLECTION; ANNUALLY ADJUST EXEMPTIONS FOR
INFLATION BEGINNING 2024; AND ALLOW COURTS TO REDUCE THE AMOUNT OF
DISPOSABLE EARNINGS GARNISHED IN CASES OF EXTREME ECONOMIC
HARDSHIP.

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.