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, heâ€™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 donâ€™t repay their loans. The balance, introduced when you look at the stateâ€™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 Utahâ€™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 â€œaghastâ€ after reading the content. â€œThis has the scent of debtors prison,â€ he stated. â€œPeople were outraged.â€
Debtors prisons had been prohibited by Congress in 1833. But ProPublicaâ€™s article revealed that, in Utah, debtors can be arrested for still easy online payday loans in Nevada missing court hearings required by creditors.Detalles