Payday Loans and Cash Advance in Utah

Legal, no rate cap, 10-week limit. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Utah.

Is a Cash Advance Legal in Utah?

Payday loans, called deferred deposit loans in the statute, are legal in Utah under the Check Cashing and Deferred Deposit Lending Registration Act, Title 7, Chapter 23 of the Utah Code, administered by the Utah Department of Financial Institutions. Utah does not cap the fee or interest rate: Utah Code 15-1-1 lets the parties to a contract agree on any rate, and the Consumer Credit Code says the same for consumer credit. What the Act controls is time and conduct. Interest may not run for more than 10 weeks from the day the loan is made, rollovers happen only if you ask and never past that 10-week line, and once you have paid 10 weeks of interest the lender must let you repay under an extended payment plan at no extra cost. You can rescind any loan by 5 p.m. the next business day, make partial payments of $5 or more at any time, and the lender must pull a consumer report or verify your income before lending and report the loan to a credit bureau. At the $15 per $100 fee the CFPB describes as common, $300 for two weeks costs $45, about 391 percent APR, and a Utah lender is free to charge more.

The governing law is Utah Check Cashing and Deferred Deposit Lending Registration Act (Utah Code 7-23-101 et seq.; operating rules at 7-23-401, extended payment plan at 7-23-403; interest freedom at Utah Code 15-1-1).

Loan Limits and Terms in Utah

Utah replaces price caps with a clock. A lender can charge whatever fee it posts, but the meter stops 10 weeks after the loan date, and no rollover, same-day refinance or new loan whose proceeds pay off the old one may push interest beyond that point. Lenders must post their fee schedule in dollar amounts, the Department complaint number, and a list of the states where they are registered to lend online. For a first-time customer the lender must pull a consumer report before lending; for returning customers it may rely on its own repayment records. The Act also bars collection calls to your workplace once you or your employer says they are not allowed, and bars any threat of criminal prosecution.

What a $300 Loan Costs in Utah

Utah sets no maximum fee, so this example uses the $15 per $100 charge the CFPB describes as common for a two-week payday loan. On $300 that is 300 x 0.15 = $45, for a payoff of $345. APR = 45 / 300 x 365 / 14 = 3.91, or about 391 percent. A Utah lender may post a higher fee, and the only hard limit is that interest stops accruing 10 weeks after the loan is made under Utah Code 7-23-401(4)(a). Check the posted schedule before signing.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Utah

• Deferred deposit lenders must register with the Department of Financial Institutions and post their full fee schedule in dollar amounts, the Department complaint number and the list of states where they are authorized to lend online (Utah Code 7-23-401(1)(a)).
• You may rescind a deferred deposit loan without any charge by returning the loan amount on or before 5 p.m. of the next business day, and the contract must say so (Utah Code 7-23-401(3)(b)).
• Interest and fees stop 10 weeks after the loan date no matter how many rollovers occurred, and a rollover can happen only if you request it (Utah Code 7-23-401(4)(a) to (4)(c)).
• You may make partial payments of $5 or more on the principal before maturity without extra charges, and the lender must give you written notice that you are eligible for an extended payment plan (Utah Code 7-23-401(1)(d), (3)(a)).
• The lender may not use or threaten the criminal process in any state to collect, and may not call you at work once you or your employer says the employer prohibits it (Utah Code 7-23-401(4)(f), (4)(g)).
• Once in any 12-month period, or after 10 continuous weeks of interest, you can demand an extended payment plan of at least four equal payments over 60 to 90 days with no added interest or fees (Utah Code 7-23-403).
• Before lending, the lender must check your ability to repay by pulling a consumer report or verifying your income, and must report the loan and its outcome to a consumer reporting agency (Utah Code 7-23-401(1)(g) to (1)(i)).

Complaints and licence checks go to the Utah Department of Financial Institutions: 801-538-8830, dfi.utah.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Utah

The Act applies to any deferred deposit lender extending loans in Utah, and Utah Code 7-23-401(2) specifically covers lenders that operate through the Internet or other electronic means: they must show the same posted disclosures conspicuously before you enter the loan. Registered lenders must also list every state where they are registered or authorized to lend online, which gives a Utah borrower a quick way to tell a registered site from an unregistered one. Utah has long been a base for online payday lenders precisely because it has no rate cap, so many websites offering loans elsewhere are Utah registrants; that does not make an unregistered site legal here. A lender that is not registered with the Department cannot rely on the Act, and a Utah resident who receives collection threats of arrest or calls at work after asking them to stop is dealing with a lender that is breaking 7-23-401(4). The Department takes complaints at 801-538-8830, the same number the statute requires lenders to post.

Alternatives If a Payday Loan Is Not the Right Fit

Utah has no rate cap on small installment loans either, so the cheapest alternatives are usually not commercial lenders. Federal credit unions in Utah offer Payday Alternative Loans, a small-dollar product with a capped rate and a small application fee for members, and many credit unions run emergency loan programs of their own. An advance on wages from your employer, an overdraft line at your bank, a payment plan with the utility or medical provider you owe, and local emergency assistance can cover a one-time gap without a two-week deadline. If you already have a deferred deposit loan, remember the two levers the Act gives you: partial payments of $5 or more at any time reduce the principal the fee is charged on, and the extended payment plan under Utah Code 7-23-403 spreads the balance over at least four equal payments across 60 to 90 days at no cost, once every 12 months or automatically after 10 weeks of interest.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• IdahoThe fee cap, a worked example and the regulator to call in Idaho.
• WyomingThe fee cap, a worked example and the regulator to call in Wyoming.
• ColoradoThe fee cap, a worked example and the regulator to call in Colorado.
• New MexicoThe fee cap, a worked example and the regulator to call in New Mexico.
• ArizonaThe fee cap, a worked example and the regulator to call in Arizona.
• NevadaThe fee cap, a worked example and the regulator to call in Nevada.