Payday Loan Lowdown

If you live in the state of Utah, this one’s for you. I want to inform you about the state laws that regulate payday lenders. Why? Well, to be forewarned is to be forearmed — that’s why. And these are no toothless laws: The Department of Financial Institutions enforces these laws and conducts an annual examination of each payday lender’s operation. Here are a few features of the law:

• The lender must post a schedule of fees charged for a deferred deposit loan. The fees must be disclosed using the APR and the dollar amount of the fees.
• Your payday lender should post the complaint number — the number you can call to file a complaint. In case you don’t have the number, here it is: (801) 538-8830.
• Your lender cannot extend the loan beyond twelve weeks from the initial execution date of the loan.
• Your lender CANNOT threaten to bring criminal proceedings against you if a check you provide to the lender is returned for insufficient funds.
• You can rescind the payday loan and finance charges if you return the loan amount by 5:00 PM the next business day.

This entry was posted on Thursday, September 14th, 2006 at 10:42 am and is filed under Information. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.