Looking at this state's ballot propositions can be compared to watching the lottery numbers be read on television — the numbers are random and it's usually very difficult to find anyone who actually cares.

With the current state of the economy, though, people tend to be paying more attention to numbers than usual. This should include propositions.

Some of these can either help us or hurt us in this economic downturn; Proposition 200 is an example of one. Though it may seem like an average proposition, it is clear that after examining the fine print, this is no longer the case.

Proposition 200 deals with payday loan reform — or so its backers would like us to believe.

“The payday loan companies want you to believe it is reform, but they are only telling you half of it,” said Ken Clark, manager of the No on 200 campaign.

First, we should clarify what a payday loan is. People use these for emergency situations or for other things that life throws at them unexpectedly. Payday loan companies allow people to take out a small amount of money and charge interest. However, they expect to be paid back (principal plus interest) in full within the next month.

“What they tell you is that it is good to get a convenient short-term loan, but what they don’t tell you is that you will get wrapped up in the cycle of debt. If you are having a hard time paying $200 for something, you are not going to be able to pay $230 two weeks later,” Clark said.

He proceeded to tell me there are over 700 offices where we can visit these greedy loan companies in Arizona. To put it in perspective, these home-wrecking corporations have more locations in Arizona than Starbucks and McDonalds combined.

This is a real threat to us college students because many of us can get in situations where we are strapped for cash and do not have the money for something important.

“They target military retirees, low income families and students,” Clark said.

It is important to understand how Proposition 200 works. As of now, the “sunset date,” or the date payday lending would end in Arizona, is July 1, 2010.

However, if Proposition 200 is passed, payday lenders could practice their deception in Arizona indefinitely.

Instead of calling the extra money they charge interest, they call it a fee. This lures customers into a false sense of security because the word interest does not appear anywhere in the equation. This predatory side of the loan industry fails to mention that this “fee” actually is interest. Legally defined in the Truth In Lending act, the term interest specifically deals with companies who loan money and charge a certain percentage rate on the borrowed amount.

Why don’t the loan companies call it interest? Because when the math is calculated, the interest rate comes out to 458%. Under Proposition 200, the interest rate would be reduced to only 391%. These interest rates are so high because the so-called “fee” is so much money that is collected over a short period of time.

Also, preying loan companies can gain access to the customer’s checking account and will take the cost for the loan. However, the customers will not have this money; that is why they sought a payday loan in the first place. This causes more overdraft fees for the customers.

This proposition is touted as reform but, in reality, will extend payday lenders operating days in Arizona for an indefinite period.

Corporations have tried to pull the blanket over our eyes one too many times, but this time we are aware of what the ultimate motives are.

Protect your pocketbooks when you go to the polls on Nov. 4.

Andrew is out buying a safe for his pocketbook. He can be reached at andrew.hedlund@asu.edu.