Most of us have been faced with a bit of a financial bind or have had to make big purchases or investments. And most of us have either used a credit card, taken out a loan, or at least wondered about those options. With either, a high interest rate could get us into more money trouble if we’re not careful about using it responsibly and making payments on time. The Beehive State can also help -- by limiting the amount of interest that a creditor can charge. This is an introduction to interest rates laws in Utah.
Interest Rates Laws
States may craft their interest rate laws depending on the type of credit or loan involved. By restricting the amount of interest a creditor can charge, these laws are designed to help consumers avoid crippling debt and deter predatory lenders. Utah’s maximum interest rate is 10% absent a contract, and charging more than the legal rate, (known as “usuryâ€) is a felony.
Interest Rates Laws in Utah
The table below lists Utah's interest rate statutes.
| Legal Maximum Rate of Interest | 10% absent contract Utah Code 15-1-1, et seq.: Interest |
| Penalty for Usury (Unlawful Interest Rate) | Felony of the 3rd degree Utah Code 76-6-520: Criminal Usury |
| Interest Rates on Judgments | Federal post-judgment interest rate as of Jan. 1 of each year plus 2%; judgment on contract shall conform to contract and shall bear interest agreed to by parties Utah Code 15-1-4: Interest on Judgments |
| Exceptions | Pawnbroker Utah Code 11-6-4: Political subdivisions may not set interest rates |
The easiest way to prevent the financial pitfalls of high interest rate credit cards is to avoid credit card debt entirely. This is certainly easier said than done, but one of the best strategies for staying out of debt is to use a credit card responsibly and pay off the entire balance quickly -- every month, if possible. For those already in significant credit card debt, there could be consumer protections under federal law that can help.
Related Resources for Utah Interest Rate Laws
With all the fine print on credit card offers and loan documents, figuring the interest rate can be difficult. If you would like legal assistance regarding an interest rate matter, you can consult with a Utah consumer protection attorney in your area. You can also find additional articles and information on this topic by visiting FindLaw’s section on Usury Laws and Limits on Credit Card Interest Rates.
