Utah Payday Loan Laws and Regulations

Utah Payday Loan Laws and Regulations

Are Payday Loans Legal in Utah?

Short-term Payday Loans are legal in the state of and are mostly regulated through Utah Code Ann. 7-23-101 et seq..

Consumer Guide To Payday Lending in Utah.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


The main Payday Loan requirements in Utah are:

  • Utah (US) residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

Utah doesn’t limit maximum loan amounts. It should be repaid within 70 day(s). Earlier payments don’t contemplate any additional penalty fees. The maximum APR is 658.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Utah Payday Loan Terms and Amounts 

Utah residents who are eligible for a Payday Loan can get a not limited amount of cash advance per contract. The repayment term is capped at maximum 70 day(s).

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Utah.

If a Payday cash advance is not enough, there are always other options to receive the necessary funds in Utah: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Utah Payday Loans online laws 

Payday loans from both storefront and online lenders are legal in the state of Utah. But the companies should operate according to the Utah Department of Financial Institutions, 324 South State Street, Suite 201 Salt Lake City UT 84111, (801) 538-8830 regulations.

First of all, to be ready to conduct the business on a legal basis, all the lending agencies must meet Regulation Z contained within the Truth in Lending Act.

CFPB Laws and Regulations. The Truth in Lending Act.pdf

Still the precise Payday loan amount in total, as well as fees and any surcharges, with APR rate indicated, must be revealed within the contract you’re signing. 

The lending agency is obliged to supply you with a fee schedule listing all the fees it’s getting to make. All the amounts must be indicated with APR rates (400 – 1,200% range) and exact fees amounts. Lending agencies must indicate a telephone number within the contract you’ll use to file any complaints or clarify any questions.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

Utah Payday Loans interest rates, fees, and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Utah is 658.00%. On average the interest rate is 459%.

Besides, the total cost of a Payday Loan includes some additional fees. Utah lending rules allow to charge $15 NSF fee.

The law obligates Utah Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

According to Utah payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

The main rules regarding Payday loan lenders in Utah state that they can:

  • Charge up to 658.00%
  • Give you a contract typed in a language you understand
  • Display license & fee structure at each location

But Utah Payday Loan lenders are prohibited to threaten you for late payments or loan default and conduct any criminal actions against you.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Utah state law.

Utah Payday Loans consumer information 

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Utah. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions a repayment plan once a year
Cooling-off period None
NSF fee $20
Criminal actions Prohibited

Look for more detailed information on the official Utah state regulator website – Utah Department of Financial Institutions, 324 South State Street, Suite 201 Salt Lake City UT 84111, (801) 538-8830.

Legitimate Payday Loans online with NO credit check in Utah 

Looking for a legal Payday Loan with No credit check in Utah? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history, Utah law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Utah Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Utah law allow Payday Loans for bad credit borrowers?

The average credit score in Utah is 683, placing it in the good range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in Utah. 

  • First of all, there’re a lot of legit direct lenders in Utah providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Utah collection practices 

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Utah direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Utah it’s $20.

What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Utah. The laws limit the collection actions lenders can take – When a borrower has failed to repay a Utah payday loan, the laws dictate that lenders are not allowed to take any legal action against that borrower unless the individual has closed his or her checking account prior to repaying the debt in full. This essentially means that borrowers who maintain their checking accounts and who are unable to repay payday loans will be protected from payday loan lenders’ attempts to sue them or garnish their wages.

If you think that your payday lender violates the Utah Payday Loans law, you may file a written complaint with Utah Department of Financial Institutions, 324 South State Street, Suite 201 Salt Lake City UT 84111, (801) 538-8830. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Utah Payday Loans news  – latest changes 

The latest Utah state Payday Loans report shows:

  • One of 4 loan stores in Utah closed in the past three years, it means 25% of all payday loan stores closed in the past three years, down from 553 in 2015 to 417 in 2018.
  • The number of Payday lenders registered to operate in the state dropped from 32 in 2016 to 16 in 2018.
  • Also, lawsuits filed by lenders against people who default on loans dropped by 60% in 2018.
  • The number of Payday loans renewals dropped by 42%.
  • Payday Loans interest rates were reduced a bit.

The highest APR charged by a Utah payday lender last year was 2,607% APR, or $50 on a $100 loan for seven days.

Utah Payday Loans historical background 

1999 Check cashing companies began to be regulated.
2003 Borrowers were allowed to rescind deferred deposit loans by 5 p.m. the next business day and also to make partial payments in increments of at least $5 at no cost.
2006 Payday loans to the military were capped at 36% APR.
2008 Loan extensions were prohibited.
2010 Rollover terms were reduced to 10 weeks.
2012 All the loans extended by lenders who were not properly registered were made void.
2014 There was an attempt to limit the number of simultaneous loans but with no result.
June 2, 2016 A Payday Loan Rule was proposed.
2016 Lenders had to do a credit check before providing a loan, and offer a repayment plan.

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