Cash Advances in Utah

Posted on Thursday, June 17th, 2010 at 12:02 pm in Financial Planning Info, State Loan Info

A number of states, Utah included, impose little to no restrictions on loan terms or amount, but instead regulate the ways in which a payday lender can operate. By instead enforcing fair and ethical business practices on the part of the lender, the laws allows for the borrower to understand the terms of a payday loan and, with the lender, set their own loan amount and term. Utah’s payday regulations instead focus on maintaining an honest lending system rather than restricting individual loans.

The State imposes no limit on the fees or interest rates. Therefore, a payday lender in Utah may charge any annual percentage rate they see fit. There is also no limit on loan amount or loan term. Although a payday loan can be rolled over, in this case there is a term limit of twelve weeks. Payday lenders operating in Utah must have a license and renew the license each year. Payday lenders are required to provide the State with certain identifying information and disclose whether they have been or are being convicted of criminal activity. Lenders must also provide borrowers with a readily available chart outlining a schedule of fees and interest in dollar amounts. Finally, lenders must provide each borrower with the payday loan agreement in writing, as well as verbally stating the loan term, fees charged and date on which payment is due. Payday loan stores in Utah must provide borrowers with a phone number, through which they can voice any complaints, concerns or questions.

Sources: www.paydayloanlaws.com     http://www.credit.com/credit_information/credit_law/PaydayLoanLaws.jsp

Related posts:

1. State Cash Advance Laws
2. Payday Loan Legislation