AFFIL in the News: Payday Lending in Utah
Americans for Fairness in Lending was recently quoted in this article from the Salt Lake Tribune regarding payday lending in Utah. The article focuses on HB 15, which would deal with some of the problems created by payday lending while ignoring the need to abolish these loans altogether.
The bill could potentially limit the number of times a loan could be rolled over and would allow borrowers to request payment plans, but does nothing to cap interest rates and permanently end the cycle of debt created by payday loans. Currently, 15 states and Washington D.C. have capped interest rates at 36% or less, and members of the military also have interest rates capped at this amount. In Utah, however, APRs can still reach 400 to 500 percent.