Payday Loans in Utah

Payday loans are governed by both federal and Utah state law. Under federal law, all Payday Lenders must comply with Regulation Z of the Truth-in-Lending Act. The amount of the loan, the amount of finance charge that will be assessed against you and the annual percentage rate (APR) of the loan must be conspicuously displayed on the contract/agreement you will sign.

While payday loans are legal in the state of Utah, the State has passed a number of laws regulating payday loans. The Department of Financial Institutions enforces these laws and every year conducts an examination of each Payday Lender’s operation. Important features of the Utah law are:

• The lender is required to post a schedule of fees charged for a deferred deposit loan. The fees are required to be disclosed using the APR and the dollar amount of the fees.

• The lender is required to post the number a person can call to file a complaint. The Department's phone number is (801) 538-8830.

• The lender cannot rollover ("extend") the loan beyond twelve weeks from the initial execution date of the loan.

• The lender cannot accrue contract interest past twelve weeks after the initial execution date of the loan.

• The lender is prohibited from threatening to bring criminal proceedings against you if a check you provide to the lender is returned for non sufficient funds.

• You may make payments on your loan in $5 increments or more without incurring any additional finance charges.

• You may rescind the payday loan and finance charges if you return the loan amount by 5:00 PM the next business day.