A recent bill was introduced in Utah to stop payday loans from spiraling out of control. Rep. Brad Daw, R-Orem, introduced the bill HB113. This bill would have created a database that would list people who currently have payday loans or default on one. Once the client is listed, no payday lender in Utah could give them another payday loan.
They claim payday lenders in Utah pressure clients into taking other loans out to pay off other high-interest loans.
Regretfully for Utah consumers House Business and Labor Committee voted 9-4 to kill the bill after several committee members said the “government should not need to protect consumers from themselves.”
Another interesting fact is the payday loan industry gave at least $51,000 in the 2010 elections to Utah legislators, according to the National Institute on Money in State Politics.
Utah typically charges around 521 percent interest or $20 for every $100 loaned for two weeks. State law allows extending such loans for only 10 weeks, after which interest must stop — but it doesn’t prevent pressured customers from taking out more loans to pay off earlier ones to prevent court cases, collection fees.
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