What are Payday Loan Rules in Utah (UT)?

A payday loan is a financial service offered to salaried individuals who are facing a cash shortfall during any given month. Customers use payday loans to fulfill important financial obligations that they are not able to with their monthly salaries. They can use the short term cash loan to pay for important expenses until their next salary.

The rules regarding payday loans vary widely within the USA. States have prescribed different rules regarding the cash loans. In this article, we will take a brief look at the payday loans in the state of Utah, UT. These rules are applicable for all types of single payment payday loans with repayment based on a check held for the future date or on access to the checking account of the borrower.


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In the state of Utah (UT), the rules regarding payday rules are governed by Utah Code Ann. 7-23-101 et seq. The state rules provide different specifications about the structure of the payday loan. There is no restriction on the maximum loan amount that the lenders can extend to the buyers. The rules also do not specify any maximum interest rate that can be charged to the customers.

Deferred loan lenders are imposed a restriction in that they cannot roll over the loan beyond 12 weeks (3 months) from the date on which the deferred loan agreement is executed. In addition, lenders are not allowed to charge any additional interest on deferred loans that are due 10 weeks (2.5 months) after the date of loan agreement execution.

Payday loan lenders in the state of Utah are prohibited from making mobile cash advances. They are also obliged to post the rates, fees, charges, and due date associated with a loan at a visible place. A copy of the loan agreement that the lender has entered with the customers must be sent too. It should prominently display terms, payment dates, and fees.

No limits are imposed upon the fees that the lender can charge to the customer. Unlike some other states, there is also no limit on the finance charge and APR on 14-day $100 loans. The state rules also do not impose any kind of restriction on the borrower on the maximum number of loans that they can take at any time.

The state legislations require lenders to specify a repayment plan to the lender in case of a default on the loan. In case the lender does not act in accordance to the prescribed rules, or in case of any complaint, they can contact the Utah Department of Financial Institutions (DFI) by calling Toll-Free number (801) 538-8894 or writing a letter addressed to 324 South State Street, Suite 201, Salt Lake City, Utah 84111.

On a final note, individuals are advised to consult with a financial expert before taking any steps. The professional can offer complete information about the pertinent state and federal rules that convey rights and obligations of the borrowers.