Utah SB0230 amends consumer credit laws to prohibit prepayment penalties and clarify debt calculation methods.

Utah SB0230 amends consumer credit laws to prohibit prepayment penalties, ensuring debtors can repay closed-end consumer credit debts without incurring additional fees. It removes exceptions that previously allowed for such penalties. The bill also clarifies that debtors are not entitled to rebates from third parties unless the creditor receives a rebate from the third party due to the prepayment. Additionally, it defines key terms such as "prepaid finance charge" and "prepayment penalty" and makes technical and conforming changes to existing statutes. This bill takes effect on May 6, 2026.

Utah SB0230 amends consumer credit laws to prohibit prepayment penalties and clarify debt calculation methods.

Utah SB0230 amends consumer credit laws to prohibit prepayment penalties, ensuring debtors can repay closed-end consumer credit debts without incurring additional fees. It removes exceptions that previously allowed for such penalties. The bill also clarifies that debtors are not entitled to rebates from third parties unless the creditor receives a rebate from the third party due to the prepayment. Additionally, it defines key terms such as "prepaid finance charge" and "prepayment penalty" and makes technical and conforming changes to existing statutes. This bill takes effect on May 6, 2026.