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House adopts consumer‑lending reforms aimed at payday‑lender oversight
Summary
The House passed HB319 to tighten reporting and borrower protections in the payday/consumer lending market, including limits on loans designed to skirt the 10‑week cap and a requirement of an extended payment plan before court collection; vote was 72‑0.
House Bill 319, a negotiated consumer‑lending package, passed the Utah House on Feb. 24 by a unanimous recorded vote of 72‑0.
Representative Dott presented the bill as the product of audit follow‑up and industry negotiation. The substitute clarifies registration rules for establishments and officers, increases reporting requirements to help Division of Financial Institutions oversight, and closes a loophole lenders had used to avoid a statutory 10‑week limit on payday loans by reclassifying loans as other interest‑bearing products.
Under the bill, once a borrower reaches the statutory limit, payday lenders must offer an extended payment plan (no additional fees or interest) before seeking court collection; the bill also repeals a problematic provision that in practice led to arrests of debtors in prior cases. Representative Dott said the changes were supported by payday‑lending stakeholders and aimed to reduce borrower harm while easing burdens on the courts.
The House adopted the substitute and passed HB319 72‑0; the bill will be sent to the Senate for their consideration.
