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(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.)