Utah Representative Proposes Bill to avoid Payday Lenders From Using Bail Cash from Borrowers
Debtors prisons had been prohibited by Congress in 1833, but a ProPublica article that revealed the sweeping abilities of high-interest loan providers in Utah caught the interest of just one legislator. Now, he’s wanting to do something positive about it.
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A Utah lawmaker has proposed a bill to get rid of high-interest loan providers from seizing bail funds from borrowers whom don’t repay their loans. The balance, introduced into the state’s House of Representatives this came in response to a ProPublica investigation in December week. This article revealed that payday loan providers along with other loan that is high-interest regularly sue borrowers in Utah’s tiny claims courts and use the bail cash of these that are arrested, and often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, whom authored the brand new bill, stated he was “aghast” after reading this article. Continue reading