From Deseret News archives:
Lawsuits by payday lenders swamp courts
27,000 Utahns sued for nonpayment since '05
That is 24 people sued each day, or one an hour. It is the equivalent of suing every man, woman and child in Clearfield, Midvale or Spanish Fork (each with populations of about 27,000).
Payday lenders filed so many lawsuits that they accounted for 51 percent of all small claims cases along the Wasatch Front during the past three years, and 58 percent of those filed just last year, the Morning News study shows.
In some courts, the strain is much higher. In Provo, 81 percent of all small claims cases were filed by payday lenders over three years. In West Jordan, 66 percent were.
"It's shocking and tragic that one type of lender, which only a few years ago was completely illegal (before interest rate caps were erased), has virtually come to own the small claims court system," said University of Utah law professor Christopher Peterson, who has written books on predatory lending.
But payday loan industry spokesmen say 99 percent of their loans in Utah are successfully repaid without court action, and they say they use court action only as a last resort.
"Your numbers show there are probably some problems," he told the Morning News.
Payday loans are usually given for two weeks, or the next payday, to those with poor credit. A Morning News study in 2005 found the median annual interest on them here was 521 percent, or $20 for a two-week $100 loan. Critics contend the needy often cannot repay the loans on time and take out more loans at the high rates to cover them. The industry says charges just barely cover processing costs.
The newspaper searched computerized court records to see how many small claims cases were filed in Utah from 2005 through 2007 by companies registered as "payday loan" lenders with state regulators.
It found at least 26,762 such cases, filed by a combined 52 different payday loan companies.
Recent comments
For "speaking my mind": Education shows in the way you portray your...
Educated? Maybe not... | May 6, 2008 at 11:07 a.m.
I heard a rumor that most of the Utah Legislators are Mormon. In...
geoffhiker | April 3, 2008 at 7:01 a.m.
I am a very educated person who have used payday loans in the pass...
speaking my mind | March 6, 2008 at 12:35 a.m.
- Celtics crush Jazz 8:26 p.m.
- Swift, Rucker win early CMAs 8:24 p.m.
- Duchesne gets rematch vs. Rich 8:24 p.m.
- Car crash victim in Lehi lifeflighted 8:21 p.m.
- TCU in good hands with Dalton 8:21 p.m.
- Drug trafficking operation busted 8:19 p.m.
- Bye came at good time for Weber 8:17 p.m.
- MWC focus is on Utes, Frogs 8:13 p.m.
- RSL to face Fire's Blanco 8:10 p.m.
- Lou Dobbs resigns from CNN 7:54 p.m.
- SLC council OKs gay rights policies
- Utah Jazz have a problem at point
- 'Love story' of crash victim ends
- BYU football recruit turning heads
- Alta's Ohai is Ms. Soccer 2009
- Prep football: Felt's Facts Week
- 12 Utes return to Texas
- Cougars' defensive hoops clinic
- Wyoming writer amazed by BYU
- Gays get Mormon support in SLC
- House passes health care bill
283 - SLC council OKs gay rights policies
238 - TCU showdown has big implications
193 - Senators want food tax restored
157 - Cougars crush hapless Cowboys
155 - Utah Jazz fall apart against Kings
131 - TCU 4th in AP poll; U. 16th, Y. 22nd
119 - S.L. vote pending on gay protections
109 - No 'backlash' for pioneers, gays analogy
108 - Pratt pleads not guilty to sex charges
100
This week, I'm compiling my annual list of restaurants serving...
Ah, poor utes. Just like the team from provo made their own version of the...
2003 HUNTER WOLVERINES, 14-0, dominated all opponents. Notable Players: ...
Dear Cindy and family, I send my thoughts and prayers to be with you at the...
Did you see the monkey? He had holes cut into his head, titanium pins screwed...
byu out-recruiting utah easily the last several years...
Carbon High Dinos would beat any 5A team you throw at them!!!
Mike, you are absolutely correct, Salt Lake's dispatch center as well as the...
The accusation of bigotry, like its sister "hypocrisy" places an awful burden...
Since we're having so much fun: If health care costs are causing so many...
ok hunters 19 playoff apperances in 20 years is the best percentage just saying

