Utah rep proposes bill to stop payday lenders from taking bail money from borrowers
SalonA Utah lawmaker has proposed a bill to stop high-interest lenders from seizing bail money from borrowers who don't repay their loans. The article revealed that payday lenders and other high-interest loan companies routinely sue borrowers in Utah's small claims courts and take the bail money of those who are arrested, and sometimes jailed, for missing a hearing. High-interest lenders dominate small claims courts in the state, filing 66% of all cases between September 2017 and September 2018, according to an analysis by Christopher Peterson, a University of Utah law professor, and David McNeill, a legal data consultant. Peterson, the financial services director at the Consumer Federation of America and a former special adviser at the Consumer Financial Protection Bureau, called the bill a "modest positive step" that "eliminates the financial incentive to transfer bail money."
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