Does Tennessee Book hold any sports betting winnings to pay off the loans?
Tennessee Representative Darren Jernigan read a copy of the weekly Tennessee Journal when a recent sports betting endorsement caught his eye.
Approval at a January meeting of Tennessee Educational Lottery Sports Betting Committee permit Advance Financial Money Transmission Company take deposits for 24/7 action, a bookmaker owned by the same people as the loan company Advance Financial 24/7.
Have the capacity to finance a TN sports betting same place high interest loans are available rubbed Jernigan the wrong way. This is why he deposited HB 824 Tuesday to prohibit people from betting and having a loan in the same place. Senator Richard Briggs filed an identical invoice, SB 1029, Wednesday.
“Really, that’s the literal definition of loan usury,” Jernigan said. “I take a 279% stake and then 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. “
It will be a few more weeks before Jernigan brings the bill to the committee for hearing, as he is still working on the proposal. He is considering an amendment to clean up some of the wording and an amendment to require a bank account to place sports bets.
24/7 action using Tennessee sports betting winnings to pay off loans?
Another thing that Jernigan had a problem with is 24/7 action using the earnings of anyone who has a loan with Advance Financial to pay off their debt.
Jernigan said he already knew someone he had happened to who was willing to testify. He worries about what this might encourage.
“Some people might say [paying down the debt] that’s a good thing too, I don’t know, ”Jernigan said. “But what it encourages is that people go out and place a bet to try to cancel their loan.”
Application of the provider of Advance Financial to allow deposits and withdrawals to their more than 100 locations around Tennessee also didn’t sit well with the lottery board during the meeting. Loudspeakers noted the request “Feels a little funny” and “takes a break”.
Ultimately, however, the request was approved as it did not go against the sports betting law passed in 2019.
Advance Financial denies keeping earnings
LSR requested feedback from Action 24/7 but was redirected to Cullen Earnest, Senior Vice President of Public Policy at Advance Financial 24/7.
Earnest denied the claim:
“This practice does not happen in our stores. No one has contacted us with a complaint like this – ever. If you find someone who has experienced something like this in one of our stores, please contact me. We will remedy the situation immediately. “
The proposal would prevent several types of transactions
If the bipartite proposal is passed, it would be illegal for lenders to offer multiple types of services to someone who is also betting in the same place:
- Flexible loan plans
- Loans that use title to a client’s property, such as a car, as collateral
- Deferred presentation services, which include accepting a check and holding it before using it as a payment or deposit
- Check cashing