Bill > SB0230

This bill modifies the Utah Consumer Credit Code by clarifying rules around prepaying debts. It defines "prepaid finance charge" as outlined in federal regulations (12 C.F.R. Sec. 1026.2) and "prepayment penalty" as a fee for paying off a debt early, explicitly stating that a prepaid finance charge is not a prepayment penalty. The bill establishes that debtors can prepay closed-end consumer credit debts without a prepayment penalty, and that any prepaid finance charge is nonrefundable unless the parties specifically agree otherwise. It also clarifies how the unpaid balance of a debt is calculated if the maturity is accelerated and a judgment is obtained, stating that the balance should be calculated as if paid in full on the judgment date, with interest accruing at the agreed-upon rate. This bill will become effective on May 6, 2026.

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https://le.utah.gov/~2026/bills/static/SB0230.html