By Dennis Shaul
This will be an archived article that ended up being posted on sltrib.com in 2015, and information into the article can be outdated. It really is supplied just for individual research purposes and may even never be reprinted.
Their state of Utah has enacted crucial customer security defenses for borrowers of payday advances, including a necessity that loan providers provide a payment plan that is extended. This interest-free payment choice ended up being codified into legislation during the urging of our trade relationship for individuals who need additional time to settle their loan. These defenses boost the value associated with the pay day loan choice for all customers.
This essential client choice is much like one recommended by my company, the Community Financial solutions Association of America (CFSA), inside our industry-leading mandatory member guidelines. Utah’s legislation permits the consumers additional time to settle their loans during a period of extra months at no extra fee and without accruing interest. Unfortuitously, a current Salt Lake Tribune article (“45,000 Utahns could perhaps not repay payday advances a year ago” Oct. 11) mischaracterizes the payday financing industry in Utah together with clients it acts, citing the amount of borrowers signed up for extensive payment plans. This quantity amounts to significantly less than 7 per cent of all of the borrowers.
It isn’t just wrong to convey that the information shows an important quantity of borrowers default to their loan following the initial 10-week period of time. (more…)