Interest on a typical utah cash advance rises to 554% APR

Interest on a typical utah cash advance rises to 554% APR

A year ago to 554%, according to a new state report as surviving loan stores try to endure, they raised their already astronomic rates — from an average 523% annual percent rate. (That is additionally 20% greater than the typical 459% they charged four years back whenever their slump began).

At that brand new normal price, borrowing $100 just for a week costs $10.63.

In case a borrower repays that in 10 days — the restricted term that Utah law enables lenders to charge such high interest on short-term loans — the attention would cost significantly more than the first quantity lent ($106.30 when compared with $100).

A few of the loans in Utah cost more than that average.

The greatest price charged with a Utah payday loan provider over the past financial 12 months had been 1,669% APR, or $32 per week on a $100 loan. The attention for 10 days at that price would price more than 3 x the quantity lent ($320 vs. $100). Continue reading «Interest on a typical utah cash advance rises to 554% APR»