Page One of the business section of USA Today dated Dec. 28, in an article titled, “Utah state laws allow predatory lending,” reported predatory lending practiced by four small banks chartered in Utah.
Utah is one of few states in the country that has not legislated consumer usury laws that cap interest rates. Utah Code 15-1-1 states: “The parties to a lawful written, verbal or implied contract may agree upon any rate of interest …” This has allowed some of our banks to lend, albeit to high risk customers domiciled outside of Utah, at rates that exceed 150%!
Our state, where the Republicans have a supermajority in the Legislature, has taken the posture that consumer interest rates should be left to the market.
Any caring legislative body is glaringly aware that egregiously high borrowing rates often lead to financial ruin.
Our legislators, who have not always let market forces dictate varied practices, should take immediate steps to rectify this abhorrent practice. There is no excuse!
Sudhir Amembal, Salt Lake City
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