Is the Tennessee Book Holding Sports Betting Winnings intended to repay the loans?
Tennessee Rep. 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 the Tennessee Education Lottery Sports Betting Committee permit Advance Financial Money Transmission Company take deposits for 24/7 responsea bookmaker owned by the same people as the lending company 24/7 financial advance.
Having the ability to fund a TN sports betting account in the same place where high interest loans are available rubbed Jernigan the wrong way. That’s why he filed HB 824 Tuesday to make it illegal for people to bet and have a loan in the same place. Senator Richard Briggs submitted an identical invoice, SB 1029Wednesday.
“Really, that’s the literal definition of loan sharking,” Jernigan said. “I take a 279% stake and then I play with it. The only difference is that you don’t break your legs the next day, you enter a debt cycle that ends in bankruptcy.
It will be a few more weeks before Jernigan brings the bill to the committee hearing, as he is still working on the proposal. He is considering an amendment to clean up some of the language 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 Jernigan had a problem with is Action 24/7 using earnings from anyone with a loan with Advance Financial to pay off their debt.
Jernigan said he already knows of one person he happened to who is willing to testify. He worries about what it might encourage.
“Some might say [paying down the debt] is a good thing too, I don’t know,” Jernigan said. “But what it encourages is people coming in and placing a bet to try and get their loan off.”
Advance Financial’s provider app to allow deposits and withdrawals at their more than 100 locations around Tennessee also did not sit well with the lottery board during the meeting. Speakers took note of the request “feels kinda funny” and “gives a break.”
Ultimately, however, the request was approved as it did not violate the sports betting law passed in 2019.
Advance Financial denies keeping its earnings
LSR asked Action 24/7 for comment but was redirected to serious cullenSenior Vice President of Public Policy at Advance Financial 24/7.
Earnest denied the claim:
“This practice does not occur in our stores. No one has contacted us with a complaint like this – ever. If you find anyone 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 bipartisan proposal passes, it would be illegal for lenders to offer multiple types of services to someone who is also betting at the same place:
- Flexible Loan Plans
- Loans using a customer’s title deeds, such as a car, as collateral
- Deferred presentment services, which include accepting a check and holding it before using it as payment or deposit
- Check cashing