Bill > SB0230

This bill modifies the Utah Consumer Credit Code, specifically concerning the prepayment of closed-end consumer credit debts, which are loans with a fixed repayment schedule. The changes clarify that debtors can prepay their outstanding balance without a prepayment penalty, which is defined as a fee charged for paying off a debt early. The bill also clarifies that a "prepaid finance charge," a fee paid upfront when the loan is taken out, is not considered a prepayment penalty unless the parties explicitly agree otherwise. Additionally, if a creditor accelerates a debt and obtains a judgment, they must calculate the unpaid balance as if the debtor had paid in full on the judgment date, with interest accruing at the agreed-upon rate. These changes are set to take effect on May 6, 2026.

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