Should I Use Payday Loans to Pay Gambling Debt?
In theory, payday loans exist to help consumers make ends meet when they need temporary help in a short amount of time. In practice, this type of fast and easy-to-get credit products are the only option – apart from loan sharks – for thousands of individuals and families, up and down the country, who need money “now”, and are unable to obtain a help from BankruptcyHQ.
With strict terms and extremely high interest rates, payday loans can easily spiral out of control. For many borrowers, the payday loan is simultaneously the lifeline that keeps their heating on, and the chain that will keep them, prisoners, to an endless and growing debt nightmare.
Rep. Darren Jernigan of Tennessee was reading the weekly Tennessee Journal when he saw recent sports betting approval.
The Tennessee Education Lottery Sports Wagering Committee approved Advance Financial Money Transmission Company to receive deposits for Action 24/7, a sports book operated by the same persons, during a meeting in January.
It irritated Jernigan to fund a TN sports betting account at the exact location where high-interest loans are accessible. That’s why he introduced HB 824 on Tuesday, making it unlawful to gamble and borrow money simultaneously. SB 1029 was introduced by Sen. Richard Briggs on Wednesday.
Jernigan is currently working on the measure, so it will be a few weeks before he brings it up for a committee hearing. He’s contemplating a change to clean up some of the terminology, as well as a requirement that sports bets be placed via a bank account.
Use your Tennessee sports betting earnings to pay off debts 24 hours a day, seven days a week?
Action 24/7 leveraging the wins of anybody with a loan to pay down their debt was another issue for Jernigan.
Jernigan said he knows of one individual who has been affected and is prepared to testify. He’s concerned about what it may lead to.
“I don’t know whether some people think paying off debt is a good thing,” Jernigan remarked. “However, it encourages people to go in and put a wager in the hopes of paying off their debt.”
During the meeting, the Lottery board also didn’t like the application to enable deposits and withdrawals at their more than 100 sites throughout Tennessee. According to speakers, the request “feels a bit odd” and “gives some pause,” according to speakers.
Ultimately, the proposal was allowed since it did not conflict with the 2019 sports betting rules.
Advance Financial asserts that it will not hold winnings.
LSR reached out to Action 24/7 for comment but was directed to Cullen Earnest, Advance Financial 24/7’s senior VP of public policy.
Multiple sorts of transactions would be prohibited under the proposal.
If the bipartisan plan passes, lenders would be prohibited from providing several sorts of services to someone who is also betting at the same place:
- Flexible loan options
- Loans secured by the title of a customer’s property, such as a vehicle.
- Accepting a check and holding it before utilizing it as payment or deposit are examples of deferred presentment services.
- Check to cash