Utah AG candidates have differing views on payday loans
October 13, 2008 | Utah, industry, media coverage, states | Comments (1)From the article:
For example, Hill supports passing a state usury law to further regulate payday lenders and eliminate predatory loan practices.
Shurtleff’s campaign coffers are fed by tens of thousands of dollars from quick-cash outlets. He denies that such businesses – Utah has about 400 – are predatory, as long as they operate within the law.
“They’re highly regulated and get very few complaints, so I can’t go after them,” Shurtleff said.
That said, Shurtleff acknowledges that customers could use some additional information, such as “warning them that 60 percent can’t pay off their loans in two weeks so the fee doubles and quadruples” – each time the loan gets extended.
State law currently prohibits extensions beyond 12 weeks.
Hill advocates a 36 percent cap on payday loan fees. In Utah, the annual percentage rate can hit 500 percent and higher. Under state law, that APR must be posted in full view at each loan store.
Comments»
It will be interesting to see how payday lending laws change throughout the country once we have a new administration in office.