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Utah Representative Proposes Bill to avoid Payday Lenders From Using

Utah Representative Proposes Bill to avoid Payday Lenders From Using

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, he’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 don’t repay their loans. The bill, introduced into the state’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 Utah’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 “aghast” after reading this article.