For a long time, Utah has provided a good climate that is regulatory high-interest loan providers.
This informative article initially showed up on ProPublica.
A Utah lawmaker has proposed a bill to cease high-interest loan providers from seizing bail funds from borrowers that don’t repay their loans. The balance, introduced within the state’s House of Representatives this week, arrived in reaction to a ProPublica research in December. This article revealed that payday loan providers as well as other loan that is high-interest regularly sue borrowers in Utah’s little claims courts and simply take the bail cash of the who’re arrested, and often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, who authored the brand new bill, stated he had been “aghast” after reading this article. “This has the aroma of debtors jail,” he stated. “People were outraged.”
Debtors prisons had been prohibited by Congress in 1833. But ProPublica’s article revealed that, in Utah, debtors can be arrested for lacking court hearings required by creditors. Continue reading “Utah rep proposes bill to avoid payday lenders from using bail cash from borrowers”