ProPublica logo.Utah Representative Proposes Bill to prevent Payday Lenders From using Bail funds 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 1 legislator. Now, he’s wanting to do something positive about it.
Feb. 14, 5:17 p.m. EST
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A Utah lawmaker has proposed a bill to quit high-interest loan providers from seizing bail cash from borrowers whom don’t repay their loans. The balance, introduced when you look at the state’s House of Representatives this came in response to a ProPublica investigation in December week. The content revealed that payday loan providers as well as 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 bill that is new stated he was “aghast†after reading the content. “This has the scent of debtors prison,†he stated. “People were outraged.â€
Debtors prisons had been prohibited by Congress in 1833. But ProPublica’s article revealed that, in Utah, debtors can be arrested for still easy online payday loans in Nevada missing court hearings required by creditors.
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