Something stirring in Utah?
January 12, 2010 | Utah, industry, regulation | Comments (0)The Salt Lake City Tribune editorializes with the usual blather:
Rep. Jim Dunnigan has prefiled a bill for the coming Legislature that could help some customers of payday lenders escape the clutches of a death spiral of debt. It would reduce the maximum period of rollover loans from 12 weeks, under the current law, to 10 weeks, and it would allow borrowers to convert loans to a fixed-term payment plan of at least 60 days.
These are sensible reforms, but they won’t prevent unwary, undisciplined or unlucky borrowers from falling victim to what amounts to loan sharking. Only caps on interest rates could do that, and, unfortunately, Utah legislators, always wary of intervening in the market, have not shown any inclination to go down that road.
No, capping interest rates is a ban. So let’s here it for Utah legislators who are “always wary of intervening in the market.”
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