Payday lenders escape new restriction

From the Salt Lake Tribune
by Lee Davidson

Payday lenders — one of the largest campaign donors to legislators — escaped a move Wednesday to limit where they can sue delinquent borrowers.

Sen. Ben McAdams, D-Salt Lake City, introduced SB110 because he said payday lenders often file suits in courts that are distant from where borrowers live — such as filing in Provo against St. George residents — in a deliberate attempt “to deny justice to borrowers. … It’s an abusive practice that needs to be reined in.”

But the Senate Business and Labor Committee voted 4-3 to kill it after payday lenders testified they are trying to hold down costs for borrowers by filing in courts near corporate headquarters. Otherwise, it could “potentially increase costs to all borrowers across the board,” testified Wendy Gibson, a Check City regional manager representing the Utah Consumer Lending Alliance of payday lenders.

Read the whole story by clicking here.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

*