Payday loans in the state of Utah are regulated by Check Cashing and Deferred Deposit Lending Registration Act (Chapter 23), as well as a number of amendments – HB0166, HB127 and etc.
The local authorities track the state of affairs around payday lending industry and like almost any other US state stick to the tendency of toughening the laws in order to protect the potential borrowers. Thus, Utah Department of Financial Institutions adopts new amendments and regulations on an annual basis, initiating auditions of operations carried out by local payday lenders.
Mentioned below is the breakdown of points that protect your choice and ensure safe borrowing.
First of all, to be able to conduct the business on a legal basis, all the lending agencies must meet Regulation Z contained in the Truth in Lending Act. The exact loan amount in total, broken down in the loans, fees and any surcharges, with APR rate indicated, must be revealed in the contract you are signing. The contract (as well as the lender’s website must underline the short-term purpose of payday loans).
The lending agency is obliged to provide you with a fees schedule listing all the charges it is going to make. All the amounts must be indicated with APR rates (according to our offers overview the amounts balance within (400 – 1,200% range) and exact fees amounts. Lending agencies must indicate a phone number in the contract you can use to leave a compliant.
In order to avoid a loan burden, the agencies are not allowed to extend your loan contract for more than 10 weeks from the date the contract was carried into effect. Even if you fail to repay your loan on time, lenders are not empowered to threat you with criminal proceedings. The penalty fees for early repayments are prohibited – you can repay your loan in several parts, although the amount per part must not be less than $5.
If you have taken the loan but it turned out you are not going to use it, you can take advantage of the penalty-free return option. In this case you must return the amount in the full not later than 5:00 PM the next business day.
If you realize you will not be able to complete the repayment on time, you can use an option of enrolling in extended payment plan (the option is available once in a year or if after a completion of 10-week interest rate payment on a deferred deposit loan). The option implies splitting the amount into 4+ parts and the repayment period of 60 days; during this period lending agencies are prohibited from charging you an interest rate.
Payday loans regulations take into account confidentiality aspects: thus, if the process of debt collection is initiated, you or your employer can submit a request not to contact you during your business hours. If you are failing to complete a repayment on time and the lending agency is looking to start a legal procedure, it must send an email (or mail) notification on their intent to start legal proceedings no less than 10 days before taking the action.