In accordance to the UtahPolicy poll the majority of the state residents want payday loan industry to be more seriously controlled.
There has been a lot of controversy with regards to payday lending and every legislative session had payday loans mentioned and discussed. The session at the beginning of a year was no different.
In Utah payday lenders can operate more freely than in some other states of the country and lenders here can charge interest rates that are 400% in APR, which is really a pretty high interest. There has been several scandals with regards to payday lenders and there sure coming to be more.
The major question stated by the poll carried out by Pollster Dan Jones & Associates is whether residents of Utah are for or against the limits on payday lending as well as introduction of a payday loan database tracking system.
The thing is that payday loans being so controversial, the offered database will allow tracking the number of loans per person as well as loan amounts. As a result, a person with more loans than it is allowed, or a bigger loan balance will be unable to take more loans. This measure is proposed as a step to protect borrowers against unhealthy lending habits; however, it also seems to limit the rights of the latter as a person should be able to get as many loans as they wish to.
The poll showed that about 57% of the voters advocate for the idea that stronger regulation for payday lenders is a good thing for the state as well as that a certain limit to a possible debt will result in fewer people getting into the situation when they borrow more than they can afford. They are opposed to 37% of people who do not see the limit as a necessity.
The residents of Utah who are Republicans are sort of weary when it comes to business regulation. However, they seem to be in favor of the first option: 54% against 41%. Democrat camp also speaks in favor of stronger regulation – 65% against 30%. And so do independent voters: 60% against 33%.
It is not news that young people with not stable incomes are more prone to using payday loans; however, in accordance with the aforementioned poll, they also speak in favor of stronger payday loan regulation in the range of 69% against 20%.
With such figures it looks like more changes to payday loan legislation in Utah are on the way.