Utah Payday Loan Laws
Payday loans in the state of Utah are officially legal and lenders can operate in the state provided that they comply with the laws and have got a proper license.
Utah refers to the group of states with permissive laws with regards to payday loans. The term of a loan set to maximum is 12 weeks (which is longer than in some other states). And there is no limit to the maximum amount of loan. Lenders here are allowed to set the rates of interest as high as they find appropriate and thus, APR can be pretty high for payday loans in Utah.
Utah regulation body requires the lenders willing to operate in the state to make the applications in a proper way and also make sure that a business is registered appropriately. Due to such lenient policy Utah hosts about 400 payday lending institutions at the present moment.
Payday loans are applied for broadly in the state due to the fact that this is the most convenient loan option available to everyone. It is especially helpful to have such a service at hand when you face some kind of emergency and no delays are possible.
Payday loan laws in Utah are very much alike the ones in Nevada. It also is very lenient towards payday lenders and practices permissive payday loan regulation. In fact, there are only 8 such states across the country, all the other states either choose more restrictive approach in some payday loan aspects (they are called hybrid states), others prohibit payday lending at all (restrictive states).
Surely, permissive policy towards payday lenders in Utah does not mean that there are no laws or regulations in place. There are registration fees for companies as well as certain requirements on their part to comply with. No company with any criminal record will be authorized to do business in the state; all of them should provide the proofs that they have never had anything of the kind.
Besides, deferred deposit loans with the usage of checks are also prohibited in the state. Mobile payday loan operations are also considered illegal in Utah. Roll-overs are allowed; however, if a loan term is no longer than 12 weeks total.
In accordance with the laws of the state, payday lenders in Utah are required to disclose the interest and fees information to all the customers before the agreement is signed; this information should also be placed in the land-based store as well as on a website so that customers could see it clearly.