SB 230 Utah Senate · 2026 General Session

Consumer Credit Amendments

SB 230 modifies Utah's Consumer Credit Code to ban prepayment penalties on most consumer loans. It directly affects borrowers who pay off loans early, such as for mortgages or credit cards, by preventing creditors from charging fees for early repayment. The bill removes an existing exception that allowed penalties for certain home loans without a subordinate lien, ensuring borrowers can pay off debts without extra fees. It also clarifies that third-party fees (like origination costs) aren't automatically rebated unless the creditor qualifies for a rebate. This change takes effect May 6, 2026.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House Passage

Mar 2026

Signed into Law

Mar 2026

Introduced Feb 2, 2026 Signed Mar 23, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 4 edits · Mar 23, 2026

MODERATE

This bill updates Utah's consumer credit laws to clarify that creditors generally cannot charge prepayment penalties, with specific exceptions for certain home loans. It also redefines how finance charges are treated and restricts rebates for third-party fees unless the creditor themselves receives a rebate. The changes aim to simplify the rules for borrowers and align the state code with federal regulations.

Scope change

The bill modifies the applicability of prepayment penalty rules, narrowing the ability of creditors to charge fees for early repayment while maintaining an exception for specific types of subordinate lien loans.

REQUIREMENT

Removed the general exception allowing creditors to charge prepayment penalties, establishing a default rule that no penalty can be charged unless specific conditions for subordinate lien loans are met.

Changed the rules for third-party fees, stating that borrowers cannot get these fees rebated unless the creditor is also entitled to a rebate of those costs.

DEFINITION

Added specific definitions for 'prepaid finance charge' and 'prepayment penalty' to clarify exactly what fees are prohibited versus what are allowed.

TECHNICAL

Reorganized the statute structure and updated references to subsections to reflect the new numbering scheme after removing the general prepayment penalty exception.

Floor votes · Senate Feb 24, 2026 · House Mar 4, 2026

How they voted

25–0

Passed · 4 other

Total votes 29

Feb 24, 2026

D Democratic6

5 Yea 1

83% Yea

N Forward1

1 Yea

100% Yea

R Republican22

19 Yea 3

86% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 23, 2026

Signed into law

Governor Signed

executive

Mar 5, 2026

Upper · Passed

Senate/ signed by President/ sent for enrolling

upper

Mar 4, 2026

Upper · Passed

House/ signed by Speaker/ returned to Senate

upper

Mar 4, 2026

Lower · Passed

House/ passed 3rd reading

lower

Mar 2, 2026

Lower · Passed

House/ comm rpt/ placed on Consent Calendar [House Business, Labor, and Commerce Committee]

lower

Feb 28, 2026

Lower · Passed

House Comm - Consent Calendar Recommendation [House Business, Labor, and Commerce Committee]

lower

Feb 27, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Business, Labor, and Commerce Committee]

lower

Feb 25, 2026

Committee

House/ to standing committee [House Business, Labor, and Commerce Committee]

lower

Feb 24, 2026

Introduced

House/ 1st reading (Introduced)

lower

Feb 24, 2026

Lower · Passed

Senate/ passed 3rd reading

lower

Feb 9, 2026

Upper · Passed

Senate/ committee report favorable [Senate Business and Labor Committee]

upper

Feb 6, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]

upper

Feb 3, 2026

Committee

Senate/ to standing committee [Senate Business and Labor Committee]

upper

Feb 2, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

1 primary · 1 co-sponsor