Posted on: Feb 16, 2021, 9:46 a.m.
Last updated on: February 16, 2021, 12:39 p.m.
Tennessee State Representative Darren Jernigan (D-60th) is taking a stand against payday loans and sports betting, which he says shouldn’t be served on the same menu.
According to Jernigan, that’s exactly what happened in the all-new sports betting market since licensing in January to Action 24/7.
The online bookmaker is part of the same group as the local payday lender Advance Financial 24/7. This means that players can now fund their Action accounts 24/7 in the same physical space that they can apply for a 279% annual percentage rate of charge (APR) loan. What could go wrong?
Both brands are part of Advance Financial Money Transmission Company. The company is owned by husband and wife Tina and Mike Hodges sales team.
Major donors to Donald Trump’s re-election campaign, the Hodges describe themselves on their website as “fascinated by thought and life threatening.” They are also followers of an obscure branch of philosophy called “guidance” and are the founders of the Hodges Foundation for Philosophical Guidance.
But Jernigan thinks steering sports betting right next to predatory lending is a lousy philosophy.
Really, this is the literal definition of a loan shark ”, Jernigan said Legal sports report. “I take a 279% interest rate loan and play with it. The only difference is that you don’t break your legs the next day. You enter a cycle of debt that ends in bankruptcy.
He is also concerned that customers are being encouraged to place a bet in order to “cancel their loan”.
Pause for reflection
As Sport grip Recently discovered, it’s illegal in Tennessee for licensed payday lenders to sell lottery tickets, and it’s unclear why sports betting should be any different.
But the Tennessee Education Lottery Corporation (TELC) sports betting committee found no impediments to licensing Action 24/7 when it met in January, although its request was not approved without hesitation.
“It seems a bit awkward that someone could so easily use borrowed money to put money into a sports betting account,” said Will Carver, board and committee member, during the meeting. “Due to its location, there is a pause. “
Now Jernigan wants the rules rewritten. He introduced a bill to the Tennessee legislature that would make it illegal for lenders to offer loans and cash checks for people using the point of sale for betting purposes.
Talk to LSRJernigan also accused Action 24/7 of withholding sportsbook winnings from customers to pay off debts. A spokesperson for the company denied that this was the case.