Utah Payday Loan Laws and Protections

How Payday Loans Work in Utah

This short-term check-based credit product is found in Chapter 23 of Title 7 under state regulations of Utah. A company must register with the state’s financial regulator in order to provide this service, online or otherwise.

Utah law does not have a dollar amount of numeric rate cap for deferred deposit loans. This does not mean that any amount is justifiable. A provider must provide written contracts and disclosures with dollar amount fees and interest, review the key terms of the contract, and meet the requirements for federal cost disclosures.

Costs, Credit Checks, and Reporting

Prior to signing, analyze the APR, finance charges, total cash received, the total amount to be repaid, payment due dates, roll over clauses, and payment authorizations. Utah has no specific maximum rate for this product, some providers may charge greatly varying amounts from other providers.

The provider must make an ability-to-repay inquiry for the initial period. If the customer has not taken out a loan from the provider previously, the law requires the provider to get a consumer report. Under its procedures, Utah law requires the original loan amount, payment in full, or a default to be reported to a consumer reporting agency.

Rescission and Partial Payments

To rescind a loan without penalty, a customer must return the loan amount before 5:00 PM on the next business day. It's also important to keep a record of returning the loan and request written notice that the loan agreement was canceled.

Before the maturity of a debt, Utah law requires that a provider must accept a partial payment of $5 or more. Additionally, a provider may not charge the borrower any additional fees or costs that are not expressly stated in the debt contract. A partial payment reduces the principal. It does not effectuate a change in the due date or contractual obligations.

The 10-Week Interest Limit and Rollovers

Ten weeks post-agreement, a company can no longer add interest on unpaid principal balance. An agreement can only continue at the customer’s request and the subsequent payoff cannot extend beyond that ten-week window. A full balance payment made on or after the ten-week mark means that the company cannot grant another such loan for that same business day.

These rules limit the time that extra interest can be collected in one sequence. These rules do not limit the starting APR nor do they eliminate the balance. Read each rollover disclosure and examine the cumulative amount of dollars paid against the initial amount received.

Extended Payment Plans

A customer is allowed to use a qualifying longer repayment arrangement once in each twelve-month period. When charges have accrued for an uninterrupted period of ten weeks, a valid request must be honored. The arrangement is signed and documented, and the deadlines for the requests differ based on whether the debt is approaching the due date or has already defaulted.

The customer gets four equally sized installments. The final installment date is set no earlier than the later of 90 days after the customer defaults and 60 days after the payment schedule begins. No charges are added. The customer may later default on the arrangement, with a maximum $20 fee. If the original obligation is in default, the first installment may be up to 20 percent of the total scheduled obligation.

Compare Other Ways to Address the Expense

Take into account a bill payment plan, local assistance, a small dollar loan from a credit union, or credit counseling from a nonprofit. Use the site’s comparison of the loan and credit structures to organize repayment schedules, include disclosures of costs, and explain major risks.

Before Borrowing in Utah

Before you share any identifying information, your income, or your bank accounting information with any service provider, you must verify that they are registered. Read the privacy notice and any electronic payment authorizations. You need to leave enough money after repayment for housing, food, utilities, transport, insurance, and necessities. If a service provider is promising a loan, you should not pay a fee in the form of a gift card, wires, or cryptocurrency.

Utah Payday Loan Laws & Regulations

Before offering this type of credit, a company has to register with Utah's financial regulator. The maximum terms allowed are shown in the table. Contracts can put in stricter terms, so pay attention to the agreement.

Refer to Utah's current Chapter 23 to see the full legal text. The state provider page includes a registration search and the contacts for the regulators.

On September 7, 2026, the regulator and statute links were reviewed. Possibly, state laws and regulations will be modified.