01 Oct ProPublica logo design Utah Representative Proposes Bill to quit 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 capabilities of high-interest loan providers in Utah caught the interest of just one 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 lenders that are high-interest 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 came in response to a ProPublica investigation in December week. The content revealed that payday loan providers along with other high-interest creditors routinely sue borrowers in Utah’s tiny claims courts and make the bail cash of the who will be arrested, and quite often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, whom authored the brand new bill, stated he was “aghast” after reading this article. “This has the scent of debtors prison, ” he stated. “People were outraged. ”
Debtors prisons were prohibited by Congress in 1833. But ProPublica’s article revealed that, in Utah, debtors can be arrested for still lacking court hearings required by creditors. Utah has provided a good regulatory weather for high-interest loan providers.