ProPublica logo design. Utah Representative Proposes Bill to end Payday Lenders From Using Bail Cash from Borrowers
Utah Representative Proposes Bill to end 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 capabilities of high-interest loan providers in Utah caught the interest of 1 legislator. Now, heвЂ™s wanting to do some worthwhile thing about it.
Series: This New Debtors Prisons
just How businesses are placing borrowers behind pubs
ProPublica is a nonprofit newsroom that investigates abuses of energy. Subscribe to receive our biggest tales when theyвЂ™re posted.
A Utah lawmaker has proposed a bill to quit high-interest loan providers from seizing bail cash from borrowers whom donвЂ™t repay their loans. The balance, introduced when you look at the stateвЂ™s House of Representatives this week, arrived in reaction up to a ProPublica research in December. This article revealed that payday loan providers as well as other high-interest creditors regularly sue borrowers in UtahвЂ™s tiny claims courts and use the bail money of these that are arrested, and often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, who authored the brand new bill, stated he was вЂњaghastвЂќ after reading the content.