Utah Representative Proposes Bill to prevent Payday Lenders From Using
Bail Cash from Borrowers
Debtors prisons had been prohibited by Congress in 1833, however a ProPublica article that revealed the sweeping abilities of high-interest loan providers in Utah caught the eye of just one legislator. Now, he’s wanting to do some worthwhile thing about it.
Feb. 14, 5:17 p.m. EST
Series: This New Debtors Prisons
just just How businesses are placing borrowers behind pubs
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A Utah lawmaker has proposed a bill to quit high-interest loan providers from seizing bail funds from borrowers whom don’t repay their loans. The bill, introduced when you look at the state’s House of Representatives this week, arrived in reaction up to a ProPublica research in December. 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 make the bail cash of the that are arrested, and quite often jailed, for lacking a hearing.