Payday and name loan providers provide a method to get money fast — put up the name on your own vehicle as security and you may get a hundred or so bucks. The catch? The percentage that is annual, or APR, could be extremely high, meaning you get spending much more than that which you borrowed.
Utah is house for some associated with greatest prices in the nation, and a new report from ProPublica details just how many people who neglect to keep pace with re payments have actually even wound up in prison. KUER’s Caroline Ballard spoke with Anjali Tsui, the reporter who broke the storyline.
This interview happens to be modified for clarity and length.
Caroline Ballard: just just How this are individuals winding up in jail whenever debtor’s prison was prohibited for over a century?
Anjali Tsui: Congress actually banned debtors prisons into the U.S. in 1833. Exactly what i came across for the span of my reporting is the fact that borrowers who fall behind on these interest that is high are regularly being arrested and taken fully 247 advance to prison. Technically, they are being arrested since they neglected to show as much as a court hearing, but to many individuals, that does not change lives. Continue reading