Payday Loan Regulation Approved by Legislature

Payday Loan Regulation Approved by Legislature

Save Story

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

(Salt Lake City-AP) -- A bill meant to help consumers who get stuck paying huge interest rates on quick loans obtained through payday lending companies was approved by the Utah Legislature today.

The Utah House voted 71-to-zero to approve regulating the lenders. The Senate previously approved the measure 26-to-zero. It now goes to Governor Mike Leavitt for his signature.

The bill prohibits lenders from bullying debtors with threats of criminal prosecution, and borrowers are allowed to repay the loans within 24 hours without penalty.

It also permits debtors to make partial payments. This addresses the practice of some payday lenders who refuse partial payments, then roll over finance charges on the full amount of the loan.

(Copyright 2003 by The Associated Press. All Rights Reserved.)

Most recent Utah stories

Related topics



Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

KSL Weather Forecast