Protecting consumers goes to the heart of my work as Attorney General. As part of National Consumer Protection Week, I would like to highlight some legislative priorities for this year and call your attention to a major settlement that will benefit thousands of Arizona home owners.

My consumer protection goals for 2006 include:

Predatory Lending: Half the states safeguard their citizens from the predatory practices of unscrupulous lenders, but not Arizona. I will again seek legislation that protects citizens from the predatory fees and practices involved in high-cost loans.

Payday Loans: These small, short-term loans have incredibly high interest rates. Payday lenders are opening more and more outlets. Companies loaning the money give borrowers an "opportunity" to extend or "roll-over" the loan with new fees for each extension. I support a law that will protect consumers, so they don't get trapped in a series of loans with accumulated interest rates exceeding 400 percent.

Price Gouging: Arizona consumers still have no legal protection from price gougers during a supply emergency. The Attorneys General from the Gulf Region demonstrated the need for this kind of statute following last year's hurricanes. Half the states in the country have laws prohibiting profiteering during an emergency. Enforcement of these laws last year saved millions of dollars for consumers in those states. Arizonans deserve similar protection when a disaster affects the supply of gasoline and other necessary commodities.

Identity Theft: Last week the Federal Trade Commission named identity theft as its number one consumer complaint throughout the United States. To combat identity theft in Arizona, I support changes to Arizona law that will:

1. Require businesses to safeguard consumer records and shred customer financial information when disposing of documents.
2. Require businesses to notify customers promptly when records or computer systems have been compromised.
3. Allow consumers to place a credit freeze on their records, at no charge, so identity thieves cannot open accounts in consumers' names.

Two weeks ago, we announced an important settlement of a lawsuit against one of the nation's biggest home loan companies. Ameriquest Mortgage Co. agreed to pay $325 million to consumers and states across the country and make sweeping reforms of lending practices. Our investigation found that Ameriquest employees deceived consumers with high-pressure tactics to sell mortgage refinances.

The $325 million payment is the second-largest consumer protection settlement in history. The only one larger was the $484 million predatory lending agreement reached in 2002 between most states, including Arizona, and Household Finance Corporation. As co-chair of the Consumer Protection Committee of the National Association of Attorneys General, I took an active role in the Ameriquest settlement negotiations.

Ameriquest made 14,180 loans in Arizona during the six-year period. Arizonaconsumers who obtained Ameriquest loans are expected to receive more than $5 million in compensation. Consumers will be contacted regarding restitution once specific recovery plans are finalized.

Consumers are entitled to a level playing field when they make financial decisions. As this case demonstrates, we are working aggressively to make sure they have one.

Terry Goddard