A measure on the 2022 ballot would increase protections for Arizona residents who face potential wage or asset seizures because of outstanding medical debt.
Proposition 209 would enact the Predatory Debt Collection Protection Act. It targets medical debt but could affect all debt.
If approved by voters, it would lower the interest that creditors can levy on medical debt from the current 10% to 3%.
The measure would also raise the value of homes, cars and bank accounts that are protected from debt collectors, while lowering the amount of a person’s disposable income that can be garnished to settle a debt, from the current 25% to 10%.
However, Cronkite News reports that critics say the measure would reward people who don’t pay their bills and make it harder for others to get loans when they need them.
Election Day is November 8.
