PHOENIX -- The payday loan lobby yesterday took a licking on ballot issues in both Arizona and Ohio.

With financial help from the Arizona Credit Union System, Proposition 200 which would have lifted predatory rates to levels favored by the payday shops by gutting an existing sunset law, was defeated by a wide margin.

Gov. Janet Napolitano and Attorney General Terry Goddard, both Democrats, joined CUs and the North Carolina-based Center for Responsible Lending in pushing hard for its defeat describing the proposition as "deceitful legislation" in allowing the payday firms to claim it as a "reform measure to clean up the industry."

In Ohio, with 67% of the vote counted, Issue 5, the referendum also backed by the Center for Responsible Lending of Durham to uphold existing payday statues, was ahead by 29 percentage points.

Taking a tacitly hands-off stance, the Ohio Credit Union System did not formally join the anti-payday cause to pass Issue 5 maintaining it did not take positions on issues "which do not directly affect credit unions."

The latest Ohio tally showed 1,883,812 favoring Issue 5 and 1,059,290 opposed.