Utah Department of Finance Produces Payday Loan Lending Brochure

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

The Utah Department of Financial Institutions, in cooperation with the Utah Consumer Lending Association, has produced a new brochure, "Consumer Guide to Payday Lending."      

The goal is to provide information about instant payday loans, along with consumers' rights and legal obligations.

The most pressing aspects of the brochure are probably in the section entitled When Considering a Payday Loan, Please Remember the Following. They are:

• The finance charge on your faxless payday loan is due each time you obtain an extension.

• Compare the interest rates, charges, quality of
  service and convenience various payday advance lenders offer for loans.

• If you need an extension of your online payday loan, you are encouraged at the time of renewal to pay an amount greater than the required finance charges, thereby reducing your principal.

• If you cannot repay the loan, the payday lender may seek judgment against you for the amount of the cash loan, interest, attorney’s fees and court costs.