16 nov Why Utahns Are Winding Up In Jail After Taking Right Out Pay Day Loans
Payday and name loan providers provide an approach to get money fast — put up the name on the automobile as security and you may get a couple of hundred bucks. The catch? The percentage that is annual, or APR, can be hugely high, meaning you get having to pay a lot more than that which you borrowed.
Utah is house for some associated with greatest prices in the united states, and a brand new report from ProPublica details just exactly how some people whom don't keep pace with re re payments have actually also finished up in prison. KUER’s Caroline Ballard spoke with Anjali Tsui, the reporter who broke the tale.
This meeting happens to be modified for clarity and length.
Caroline Ballard: exactly How this are individuals finding yourself in jail whenever debtor’s prison was prohibited for over a century?
Anjali Tsui: Congress really banned debtors prisons into the U.S. in 1833. But just what i came across through the entire length of my reporting is borrowers who fall behind on these high interest loans are regularly being arrested and taken fully to prison.