Payday Loans are Legal in Utah

Find a Lender

Table of Contents

Beware of predatory lending

Payday Lenders in Utah

Short-term lending arrangements, commonly referred to as payday loans, offer borrowers in Utah an easy and quick way to access cash when they need it the most, often due to unexpected expenses or emergencies. Payday loans have become an increasingly popular option in Utah for individuals who lack access to traditional loans or credit lines. Payday loans are designed to be paid back within several weeks, usually after receiving their next paycheck, and they carry significant risks due to their high-interest rates and fees.
Payday loans in Utah can lead to potential credit score damage and a cycle of debt, making them a risky financial option for borrowers who cannot repay on time. Predatory lenders often take advantage of borrowers by imposing additional penalties, which can exacerbate their financial issues. It is essential for borrowers to carefully consider all the consequences of payday loans and to avoid getting one without proper planning and budgeting.

Payday Loan Laws

Utah has very loose regulations surrounding payday loans and lenders in the state. The Check Cashing and Deferred Deposit Lending Registration does not identify a maximum loan amount, a cap on interest and fees, or rollover limits. There is also no limit on the number of payday loans borrowers can have. The only true restrictions are a maximum term of 10 weeks and the prohibition of criminal action against borrowers for failing to pay their loan balance.

Loan Terms and Conditions

Maximum loan amount: No maximum amount identified in regulation

Maximum Interest Rate: No maximum identified in regulation (average 652%)

Minimum loan term: No minimum
Maximum loan term: 10 weeks

Number of rollovers allowed: No limit

Finance Charge: No maximum identified in regulation

Legal action: 6 Years

Certified Payday Lenders in Utah

Company NameCompany score License Status
CURO Intermediate Holdings8Valid
Populus Financial Group, Inc.7.6Valid
CNG Financial Corporation7.1Valid
Enova International, Inc.6.5Valid
Bliksum, LLC6.2Valid
Community Choice Financial, Inc.5.9Valid

History of Utah Payday Loans

Over the years, Utah has implemented various regulations to control its payday loan industry. Since 1999, the Check Cashing Registration Act required the registration and regulation of check-cashing businesses and payday lenders. Utah’s legislators gradually introduced additional rules to protect borrowers, including the right to cancel payday loans the day after signing, the ability to make partial payments without penalty, and lender disclosure requirements. The state continued to revise its payday loan regulations in 2010, reducing the allowable time for rollovers from 12 weeks to 10 weeks and implementing extended payment plans. In 2012, Utah invalidated all loans from unlicensed payday lenders, and in 2016, further changes required lenders to acquire a consumer’s credit report before lending to them and report loan information to consumer reporting agencies. Finally, in 2017, Utah updated the rules for extensions, but finance charges and maximum payday loan amounts remain unrestricted.

State Resources

How to file a complaint

The Utah Department of Financial Institutions regulates payday lenders in Utah. To check the license status or history of disciplinary actions against a payday lender, or to file a complaint, you can contact the DFI. Complaints can be submitted by downloading the online form and emailing it to [email protected].

  • ADDRESS

Utah Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

It may seem impossible to get out of payday loan debt, but it is possible. First, avoid payday loans if you can. These loans can turn a temporary need into an endless cycle of debt. It can be difficult to find a balance between repaying payday loans and living expenses, which leads to more borrowing. Utah borrowers can still escape payday loan debt, even though it is a challenge. The borrower should contact their lender to try and negotiate a repayment schedule, including reducing the amount owed or extending the payment period. Borrowers may even be able refinance their loan with a lower rate. Only file for bankruptcy as a last resort, and discuss it with a lawyer before filing.

Support Resources

Types of Quick Loans in Utah

Alternatives to Payday Loans in Utah

Personal Loans

Personal loans are a common form of borrowing in Utah. They can be used for a variety of purposes, including debt consolidation, home repairs, and unexpected expenses. Since they are typically unsecured, they do not require collateral. Instead, they are offered based on the borrower's creditworthiness. Interest rates on personal loans in Utah can vary depending on the lender and the borrower's credit score. Borrowers should also make sure they understand the repayment terms and any potential fees associated with the loan.

Land Loans

Land loans are a type of loan used to purchase land in Utah. These loans are typically offered by banks and credit unions and can be used for things like building a home, recreational use, or investment purposes. Interest rates on land loans can vary depending on the lender and the intended use of the land. It is important for borrowers to research their options and understand the terms and fees associated with the loan before committing to a land loan.

Construction Loans

Construction loans are a great option for financing the construction of a new home or renovating an existing one. In Utah, construction loans can come from banks or credit unions. These loans can be structured in different ways, including as a one-time close loan or a two-time close loan. One-time close loans allow borrowers to finance the construction and permanent financing in one loan, while two-time close loans require separate loans for each stage. It is important for borrowers to work with a lender who is experienced in construction lending to ensure a smooth process.

Bad Credit Loans in Utah

For those with bad credit, obtaining a loan can be challenging. However, there are lenders in Utah that offer bad credit loans. These loans may come with higher interest rates and stricter repayment terms than traditional loans, but they can still provide much-needed funds. Borrowers should be cautious when considering bad credit loans and make sure they understand the terms and fees associated with the loan. It may also be beneficial to work on improving their credit score before applying for a loan to increase their chances of being approved for a better rate.

Utah Small Business Loans

Utah provides several types of small business loans with different requirements and terms:

  • SBA loans: Loans that are backed by the U.S. Small Business Administration, which offer lower interest rates and longer repayment terms than conventional loans.
  • Business lines of credit: A revolving line of credit that gives businesses access to funds they need it. They have flexible repayment terms.
  • Utah Business Loan Fund: Loans of up to $250,000 for businesses that create new jobs or increase wages.
  • Utah Economic Development Revolving Loan Fund: Loans of up to $1 million for businesses in targeted industries.
  • Microloans: Small loans provided by nonprofit organizations or community lenders to help small businesses get started or expand.

VA loans in Utah

VA loans are a benefit offered to veterans and their families by the U.S. Department of Veterans Affairs. In Utah, these loans can be used to purchase a home or refinance an existing mortgage. VA loans offer several benefits, including lower interest rates and no down payment requirement. However, there are specific eligibility requirements that must be met to qualify for a VA loan. Borrowers should work with a lender experienced in VA loans to ensure a smooth process and to maximize the benefits of this program.

Utah Income Information

Many options are available to Utah students to help finance their college education. These options include:

  • Federal Student Loans: Loans provided by the federal government offering low-interest rates and flexible repayment plans.
  • Utah Higher Education Assistance Authority (UHEAA) Loans: UHEAA is a state organization that offers loans to Utah residents attending eligible schools.
  • Utah System of Higher Education (USHE) Grants: Need-based grants awarded by the state of Utah to eligible Utah residents attending an eligible institution within the Utah System of Higher Education.
  • Private Student Loans: Loans from private lenders, they commonly have higher interest rates and may require a co-signer.

Utah Income Information

According to the 2021 U.S. Census, Utah had a median household income of $79,133, slightly higher than the national median of $69,021. Utah has a diverse economy with a mix of industries including information technology, finance, manufacturing, and tourism. The state’s unemployment rate has remained consistently lower than the national average, and it has been recognized as a top state for business growth and economic development. The poverty percentage in Utah in 2021 was only 8.6%. Median household income and poverty levels vary significantly by county in Utah, with Summit County having the highest median income at $106,973, and Piute County having the lowest at $29,125.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 1, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Utah. Accessed on May 1, 2023.

Utah Payday Lender Complaints

Below are trends associated with the top payday lenders in Utah, as reported to the Consumer Financial Protection Bureau.
Company Name Count
CURO Intermediate Holdings 70
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 33
CNG Financial Corporation 27
Enova International, Inc. 27
Bliksum, LLC 26
Community Choice Financial, Inc.. 25
Total Complaints 86

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 1, 2023.

Most Common Issues

Complaint type Count
Charged unexpected interest or fees 17
Problem with payoff process 11
Received a loan didn’t apply for 11
Struggling to pay loan 11
Can’t stop withdrawal from bank 9

What are the main reasons residents of Utah apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%
 

Payday Lenders by City

  • Salt Lake City
  • West Valley City
  • West Jordan
  • Provo
  • Orem
  • Sandy
  • St. George
  • Ogden
  • Layton
  • South Jordan
  • Lehi
  • Millcreek
  • Taylorsville
  • Herriman
  • Logan
  • Murray
  • Draper
  • Bountiful
  • Riverton
  • Eagle Mountain
  • Spanish Fork
  • Roy
  • Pleasant Grove
  • Saratoga Springs
  • Kearns
  • Midvale
  • Tooele
  • Springville
  • Cedar City
  • Cottonwood Heights

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Utah, you will typically need to provide your identification, proof of income, bank account information, and contact information.

Can I cancel my payday loan?

Yes, you can cancel your payday loan in Utah, but you must do so by the end of the following business day after receiving the loan funds. Utah law requires payday lenders to provide borrowers with a notice of cancellation that includes instructions for canceling the loan.

Can a payday loan lender garnish my wages?

Yes, payday lenders can garnish your wages in Utah if they obtain a court judgment against you, but they can only garnish up to 25% of your disposable earnings.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Utah as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

When will I receive my funds if I am approved for a payday loan?

If you are approved for a payday loan in Utah, the lender will typically transfer the funds to your bank account within one business day after you’ve been approved, although some lenders may be able to provide the funds sooner.

What happens if I can’t repay my payday loan on time?

You may face additional fees and charges, and the lender may take legal action or send the debt to a collection agency, but it’s important to communicate with the lender and explore all available options.

When could I apply for another payday loan?

The earliest you can apply for another payday loan in Utah is after the repayment of your current loan.
Daphnet Logo

DISCLAIMER: Daphnet.org is not operated by, affiliated or associated with any local, state, or federal government or agency. 

Daphnet.org is an independent resource dedicated to providing unbiased, comprehensive information about laws, regulations, and lenders across all 50 states in the USA. Our mission is to empower consumers by raising awareness about responsible lending practices, exposing predatory lending behavior, and offering alternative solutions. As a non-affiliated platform, we strive to deliver accurate and up-to-date insights, helping individuals make informed decisions when navigating the complex landscape of lending in America.

© Daphnet.org 2024 - All Rights Reserved.

Scroll to Top