The Protections of Payday Loans
An industry you can trust
The Utah Consumer Lending Association makes every effort to help its customers be successful borrowers.
RESPONSIBLE BORROWERS
Payday loan customers use the service responsibly:
say that before starting the payday loan process, they understood both how much it would cost and how long it would take to completely repay the loan.
were able to repay their loan in the amount of time they had expected.
report that before taking out a payday loan, they carefully weighed the risks and benefits of doing so.
BEST PRACTICES
Members of the UCLA follow these best practices:
Before loan is issued
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Require checking account
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Require steady source of income
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Verify consumer’s ability to repay
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Verbally disclose terms and conditions
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Present extended payment plan option in bolded font in paperwork
After loan is issued
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Rescind a loan at no cost within 24 hours
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Allow loan repayment over two months with no additional fees or interest
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Stop the interest on one payday loan annually
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Only pay interest for actual duration of loan if repaid before due date
INDUSTRY PROTECTION
With UCLA support, the Legislature has championed laws that increase protections for payday loan customers:
1999
Banned unlicensed lenders from operating in the state, created notices to file complaints, established 12-week limit on loans
2010
Provided customers an interest-free loan at least every 12 months, limited loan to 10 weeks
2003
Gave customers the right to make partial payments or rescind loan
2007
Added further written and oral disclosure requirements
2012
Voided any loans originated by an unregistered lender
2014
Inquire about a customer’s ability to repay the loan, mandatory interest-free pay down after 70 days
2005
Limited amount of interest a lender can charge on a judgment
2008
Limited the number of loans a customer can have at once
A BALANCED & REGULATED MARKETPLACE
Utah has struck the best possible balance between consumer safeguards for short-term loans and providing valued access to credit when people need it most.
REAL PEOPLE, REAL STORIES