Lehi, UT (Vocus) June 30, 2010
The state of Utah has recently passed a number of new laws (house bill 15) that will directly affect the payday and cash advance loans industry and the way they’ll be able to do business in the future. While many companies might resist the change, Utah Valley based Cash Tree Loans, is publicly speaking out in favor of the new legislation.
Representative Jim Dunnigan sponsored the loan-based bill and, as a result, these new regulations went into effect as of May 2010.
- The 12-week rollover limitation has been changed to 10 weeks.
- Written contracts must provide a notice that a person is eligible to enter into an extended payment plan.
- A borrower may enter into an extended payment plan once every 12 months; however, the extended payment plan will require a newly written contract that outlines a detailed payment schedule and the money owed under the new plan.
- The payment schedule may be paid in at least four equal payments and over a time period that is at least 60 days.
- A deferred deposit lender may not charge interest or fees as part of an extended payments plan, except if the borrower defaults. At that point the lender may charge a fee that does not exceed $20 and terminate the extended payment plan and (subject to the other requirements of Chapter 23), reinstate the original deferred deposit loan terms.
- A differed deposit lender may not penalize a person who enters into a payment plan for paying money owed under the extended payment plan before the money is due.
In the end, the new legislation offers a way for borrowers to extend the time it takes to repay a loan without incurring some of the high interest rates often associated with payday quick loans. Because Cash Tree Loans strives to enhance the no fax loans experience in every way, they view the new legislation as an overall improvement in the system and believe it will no doubt be in the borrowers best interest.
Cashtree.com offers quick payday loans without the need for faxing and credit check approval. The company is an industry leader in fair services and no-fax quick loans.