According to a study commissioned by the Utah Department of Financial Institutions, Utah pay day loan companies charged an average of 473.52 percent interest. “At least one Utah payday-loan company charged an astronomical 1,564 percent annual interest last year — meaning it collected $30 in interest each week per $100 loaned.” The Salt Lake Tribune reports. Pay day lenders have made a lot of hay in recent years, partly because they have had the implicit support of the Utah Attorney General’s Office.
This was no surprise to me. I see it everyday. In any given month, at least a half dozen or so new clients of mine have pay day loans that they are fighting with. In my opinion, these lenders count on their customers to default on their loans so they can run to small claims court, get a judgment, and start to garnish.
I’ve seen these lenders create false ‘security’ documents and threaten to take away client’s property if loans are not repaid (when they have no legal right to do so). I’ve seen them send private investigators to client’s homes and threaten to arrest them if payment is not made.
Bankruptcy is the best weapon to use against these lenders. If you are trapped in the vicious cycle of pay day loans, call today for a free consultation.