Pesky county council
October 21, 2009 | Utah, industry, local issues, regulation | Comments (0)Salt Lake County (not city) Council has passed a resolution asking the legislature to enact a rate cap. From the story:
Payday lenders argued against the resolution, insisting state law already precludes the industry from collecting those higher rates. Borrowers are allowed to accumulate interest for only 12 weeks, according to Wendy Gibson, spokeswoman for the Utah Consumer Lending Association, making the return closer to 100 percent on a single loan.
Further restrictions on the industry, Gibson argued, could cost consumers and put some stores out of business.
“The alternatives to payday lending are much more expensive,” she said, noting overdraft fees and the cost of reconnecting utilities that have been turned off. “The product we offer is a viable option for tens of thousands of your constituents.”
What’s with Utah?
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