ProPublica logo design. Utah Representative Proposes Bill to get rid of Payday Lenders From Using Bail Cash from Borrowers
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, heвЂ™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 donвЂ™t repay their loans. The balance, introduced into the stateвЂ™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 UtahвЂ™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 вЂњaghastвЂќ after reading this article. вЂњThis has the scent of debtors prison,вЂќ he stated. вЂњPeople were outraged.вЂќ
Debtors prisons had been banned by Congress in 1833. But ProPublicaвЂ™s article revealed that, in Utah, debtors can remain arrested for missing court hearings required by creditors. Utah has provided a good regulatory environment for high-interest lenders. It really is certainly one of just six states where there are not any rate of interest caps regulating loans that are payday. Continue Reading