Bill > SB0329

This bill modifies regulations for deferred deposit loans (commonly known as payday loans) in Utah, introducing several key consumer protection provisions. The bill requires payday lenders to post a clear schedule of fees and interest rates in their premises, provide a written contract with specific disclosures, and verbally review loan terms with borrowers. Importantly, lenders must now allow borrowers to make partial payments of at least $5 without additional charges and permit loan rescission within the next business day without penalty. The bill restricts loan rollovers, prohibiting lenders from rolling over a loan without the borrower's explicit request and preventing rollovers that would extend repayment beyond 10 weeks. Lenders must also verify a borrower's ability to repay the loan by obtaining a consumer report or income verification and must receive a signed acknowledgment from the borrower about their ability to repay. Additionally, before initiating a civil action for default, lenders must provide a 30-day notice to the borrower in the language of the original transaction, explaining options for an extended payment plan. The bill aims to provide more transparency, flexibility, and protection for borrowers in the payday lending process, taking effect on May 7, 2025.

Budget and Finance

https://le.utah.gov/~2025/bills/static/SB0329.html