The recent Utah report reveals that borrowers pay back the loan much before their extension period. No doubt the critics claim that the data submitted is bias. In the last five years around 11,600 borrowers were entangled in the infinite loop of debt by the rapacious payday loan lenders. This data was represented by the small courts of Utah. “I have a hard time buying that,” said Linda Hilton, a longtime critic of the industry and director of the Coalition of Religious Communities, which advocates for the poor.

The statistical data also revealed that the payday loans online lenders had charged up to 2,294 APR which is around $50 per week on a $100 loan. Majority of the payday loans initially start as two weeks loan but the extension period goes up to 70 days thereby increasing the APR. The number of payday loan stores in Utah has refused to 5% in 2010 because of the rigid rules and regulations as per the Utah law. Most of the people were unable to pay back the loan on time due to increasing percentage rate especially the people who were unemployed.

According to the 2010 bill, the lenders are also required to provide the borrowers with full fledged information relating to the APR or additional fee. “That matches my experience with my customers and sounds about right. Almost everyone pays off their loans before reaching day 70. That shows we loan to people who can afford them,” said Wendy Gibson, a regional manager for Check City and a spokeswoman for the Utah Consumer Loan Association of payday lenders. For more information please log on to www.paydayloansolutions.net