Utah Residents Can Find Themselves Incarcerated If They Default on Loans
Date:  05-26-2020

With an average interest of 652 percent a $700 loan can cost over $18,000 at the end of one year
From Criminal Legal News:

Utah residents suffer from the highest payday and auto loan interest rates in the United States. It is one of only six states that does not have an interest-rate cap on such loans. Moreover, despite Congress’ ban on debtors’ prison, more and more residents are finding themselves in jail after defaulting on their loans.

President Obama began drafting federal regulations to govern payday and auto loans while he was in office. Prior to that, these loan companies had never been regulated. The Trump administration has delayed this proposal, resulting in current payday and auto loan rules varying by state.

Many states have banned these loans entirely, but six (including Utah) have left them completely unregulated. Utah’s average annual interest rate is 652 percent with some as high as 2,607 percent. This means that a $700 loan could cost as much as $18,249 at the end of one year. Continue reading >>>