For many years, Utah has provided a great regulatory environment for high-interest loan providers.
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This short article initially showed up on ProPublica.
A Utah lawmaker has proposed a bill to avoid lenders that are high-interest seizing bail funds from borrowers that don’t repay their loans. The balance, introduced when you look at 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 little claims courts and just take the bail cash of the who’re arrested, and often jailed, for lacking a hearing.
Rep. Brad Daw, a Republican, whom authored the brand new bill, stated he had been “aghast” after reading the content. “This has the scent of debtors jail,” he stated. “People were outraged.”
Debtors prisons had been prohibited by Congress in 1833. But ProPublica’s article indicated that, in Utah, debtors can nevertheless be arrested for lacking court hearings requested by creditors. Utah has provided a good climate that is regulatory high-interest lenders. Its certainly one of just six states where there aren’t any rate of interest caps regulating loans that are payday. Nastavi čitati “Utah rep proposes bill to prevent payday loan providers from using bail cash from borrowers”