SB 329 Utah Senate · 2025 General Session

Deferred Deposit Lending Modifications

SB 329 would extend the period during which borrowers can cancel a deferred deposit loan without fees. Specifically, it requires lenders to provide a default notice and allows borrowers to rescind the loan by returning the funds to the lender by 5 p.m. on the third business day following the loan transaction. This bill directly affects individuals who take out short-term deferred deposit loans, commonly known as "payday loans," by giving them more time to reconsider the agreement. The key provision modifies the existing rescission window from a shorter period to the third business day. The bill is currently stalled in the Senate after committee action failed.

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 24, 2025 Last action Mar 8, 2025

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What changed between versions

Amended Excerpts 3/4/2025 21:03:179 → Amended 3/4/2025 21:03:179 · 5 edits

MODERATE

This bill modifies Utah's deferred deposit lending laws to extend the time borrowers have to cancel loans, improve language accessibility for default notices, and clarify rollover restrictions. The changes aim to provide consumers with more time to make informed decisions and ensure lenders communicate effectively in the borrower's preferred language.

Scope change

The bill applies to all deferred deposit lenders operating in Utah and modifies existing operational requirements under Utah Code Section 7-23-401.

TIMELINE

Extended the cancellation period for deferred deposit loans from the second business day to the third business day after the transaction occurs.

REQUIREMENT

Added requirement for lenders to provide default notices in the borrower's language and make English translations available upon request.

Clarified rollover restrictions to prevent loans from being rolled over if payment would be due more than 10 weeks after the original loan execution.

Updated partial payment provisions to allow payments of at least $5 without additional charges.

TECHNICAL

Made various technical and conforming changes to align language and formatting throughout the statute.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 5, 2025

Upper · Passed

Senate/ comm rpt/ sent to Rules/ amended

upper

Mar 3, 2025

Introduced

Senate Comm - Amendment Recommendation

upper

Feb 27, 2025

Committee

Senate/ to standing committee

upper

Feb 24, 2025

Introduced

Senate/ 1st reading (Introduced)

upper

1 primary · 0 co-sponsors