Payday Loan in Utah
Legal Status: Legal (Applies to check cashers only)
Citation:
Utah Code Ann. ยง 7-23-101 et seq.
Loan Terms:
Maximum Loan Amount: No Limit
Loan Term: May not exceed 12 weeks
Maximum Finance Rate and Fees: No usury limit
Finance Charge for 14-day $100 loan: No Limit
APR for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: No limit
Rollovers Permitted: Not Specified (cannot extend or renew loan more than 12 weeks from original loan date)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Utah Department of Financial Institutions
Address: 324 South State Street, Suite 201 Salt Lake City UT 84111
Phone: (801) 538-8830
Fax: (801) 538-8894
Applicability: To a check casher who provides the maker of a check an amount of money equal to the face value of the check minus any fee or interest charged for the loan and agrees not to cash the check until a specified date.
Exemptions: Any depository or depository holding institution or any institution controlled by a depository or depository holding institution or a person that cashes a check in a transaction that is incidental to the retail sale of goods and charges no more than 1% of the amount of the check or $1.
Registration requirements: A department enforces but the act itself does not name the agency. It is given the authority to make rules and regulations. Must register by July 1, 1999, pay a registration fee (unspecified in the act), provide certain identifying information about the registrant, and disclose whether the registrant has been convicted of or been subject to any injunction, administrative order, or judgment regarding any crime involving moral turpitude. Must renew annually.
Permitted charges: No caps specified.
Prohibited acts: Cannot make a deferred deposit loan unless registered and must be a check casher to make them under this act. Cannot operate a mobile operation. Cannot rollover (defined as the extension or renewal of the term of the loan) a loan for terms totaling more than 12 weeks.
Required disclosures: Must conspicuously post a complete schedule of interest or fees in dollar amounts, the number a person can call to make complaints. Must give the customer a written contract and orally review the terms of the contract which must contain Truth In Lending disclosures, the amount of any interest and fee, and the date on which the full amount is due. Must also comply with Title 70C of the Utah Consumer Credit Code.
Loan terms: Must be in writing and must give customer a copy.
Civil / Criminal Penalties: Violation of the act is a class B misdemeanor. Act does not limit any civil liability that may exist against a check casher.
Enforcement: May revoke the registration. Can issue cease and desist orders.
