Want out of a payday loan? If a payday lender is not properly registered with the state, a bill approved by the House on Friday would void its loans and ban collecting any principal or interest.
HB459, approved by the House on a 60-11 vote and sent to the Senate, also requires payday lenders to report some additional information to the state every year but stops requiring some data that raised questions about how many loans they are making.
Rep. Jim Dunnigan, R-Taylorsville, sponsor of HB459, said most payday lenders with stores in Utah are properly registered, but some shadier ones operating online are not. He said the provision to void loans of unregistered lenders puts teeth in requirements to register.