A recent bill was introduced in Utah to stop payday loans from spiraling out of control. The bill HB113 was introduced by Rep. Brad Daw, R-Orem. This bill would have created a database which would list people who currently have payday loans or who are in 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 quash the bill, after several committee members said 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 charge 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.
You can read more of the article here http://www.sltrib.com/sltrib/home/51351884-76/bill-cases-committee-customers.html.csp
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