Bail Money from Borrowers
Debtors prisons had been prohibited by Congress in 1833, but a ProPublica article that revealed the sweeping capabilities of high-interest loan providers in Utah caught the eye of just one legislator. Now, heвЂ™s wanting to do something positive 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 prevent high-interest lenders from seizing bail funds from borrowers whom donвЂ™t repay their loans. The bill, introduced into the stateвЂ™s House of Representatives this came in response to a ProPublica investigation in December week. This article revealed that payday loan providers as well as other loan that is high-interest regularly sue borrowers in UtahвЂ™s tiny claims courts and make the bail cash of the that are arrested, and often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, who authored the brand new bill, stated he was вЂњaghastвЂќ after reading this article.