UtahBorrowers can repay closed-end consumer loans without early-payment penalties
Utah lenders cannot charge early-payment penalties on closed-end consumer loans, but upfront borrowing fees remain nonrefundable unless the borrower and lender expressly agree otherwise.
What it does
Borrowers can repay closed-end consumer loans early without an early-payment penalty. Upfront borrowing fees do not count as those penalties and may remain nonrefundable.
Upfront borrowing fees on closed-end consumer loans are nonrefundable when borrowers repay early, unless the borrower and lender expressly agree otherwise.
Borrowers are not entitled to refunds of loan setup fees paid to outside providers unless early repayment makes the lender entitled to a refund.
Argument forThe penalty ban could help borrowers pay off loans or switch lenders without paying an extra fee for early repayment.
Argument againstBorrowers who repay early may still lose upfront borrowing fees unless they and their lender expressly agree to allow refunds.
More detail
Lenders cannot charge a penalty when borrowers pay all or part of a covered debt early. The rule covers closed-end consumer loans, meaning loans rather than revolving credit accounts. Upfront borrowing fees do not count as early-payment penalties. The law took effect on May 6, 2026.
Lenders do not have to refund prepaid finance charges when borrowers repay early. This rule covers prepaid finance charges, which are upfront borrowing fees, on closed-end consumer loans. The borrower and lender can expressly agree otherwise. The law took effect on May 6, 2026.
Borrowers cannot claim refunds of covered fees paid to outside providers unless the lender becomes entitled to a refund. The rule covers costs, charges, or fees paid to outside providers to set up a closed-end consumer loan. Early repayment must make the lender entitled to a refund of at least part of the outside provider's fee. The law took effect on May 6, 2026.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 23Governor Spencer Cox SignedBecame Law
- Mar 13Senate/ to GovernorTo Governor
- Mar 13Senate/ received enrolled bill from PrintingMinor
- Mar 11Senate/ enrolled bill to Printing
- Mar 11Enrolled Bill Returned to House or SenateMinor
- Mar 6Draft of Enrolled Bill Prepared
- Mar 6Bill Received from Senate for EnrollingMinor
- Mar 5Senate/ signed by President/ sent for enrollingMajor
- Mar 5Senate/ received from HouseMinor
- Mar 4House/ to Senate
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Mar 4House/ signed by Speaker/ returned to SenateMajor
- Mar 4House/ passed 3rd readingPassed House
- Mar 4House/ 3rd readingMinor
- Mar 2House/ 2nd readingMinor
- Mar 2House/ comm rpt/ placed on Consent Calendar [House Business, Labor, and Commerce Committee]
- Feb 28House Comm - Consent Calendar Recommendation [House Business, Labor, and Commerce Committee]
- Feb 27House Comm - Favorable Recommendation [House Business, Labor, and Commerce Committee]Minor
- Feb 25House/ to standing committee [House Business, Labor, and Commerce Committee]Minor
- Feb 24House/ 1st reading (Introduced)Minor
- Vote recorded Senate/ passed 3rd reading. Result: pass.Upper
- Feb 24House/ received from SenateMinor
- Feb 24Senate/ to House
- Feb 24Senate/ passed 3rd readingPassed Senate
- Feb 24Senate/ 3rd readingMinor
- Feb 23Senate/ passed 2nd readingMinor
- Vote recorded Senate/ passed 2nd reading. Result: pass.Upper
- Feb 23Senate/ 2nd readingMinor
- Feb 9Senate/ placed on 2nd Reading Calendar
- Feb 9Senate/ committee report favorable [Senate Business and Labor Committee]Minor
- Feb 6Senate Comm - Favorable Recommendation [Senate Business and Labor Committee]Minor
- Feb 3Senate/ received fiscal note from Fiscal AnalystMinor
- Feb 3LFA/ fiscal note publicly available for SB0230
- Feb 3Senate/ to standing committee [Senate Business and Labor Committee]Minor
- Feb 3LFA/ fiscal note sent to sponsor for SB0230
- Feb 2Senate/ 1st reading (Introduced)Minor
- Feb 2Senate/ received bill from Legislative ResearchMinor
- Jan 30LFA/ bill sent to agencies for fiscal input for SB0230
- Jan 30LFA/ bill assigned to staff for fiscal analysis for SB0230
- Jan 30Numbered Bill Publicly Distributed
- Jan 30Bill Numbered but not DistributedIntroduced
Consumer Protection