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Utah legislature kills short term lending bill

Mar 05, 2011 Todd Milner

A bill that would have capped the amount of short term loans consumers can acquire was defeated in the Utah legislature by a 9-4 vote after the bill's opponents said it was not their job to "protect consumers from themselves," the Salt Lake Tribune reports.
 The proposed bill included the creation of a database that would have housed the names of consumers with outstanding short term loans, preventing them from acquiring additional loans and increasing their debt. Wendy Gibson, a spokeswoman for the short term lending industry, defended the industry on the floor of the Utah House, stating that it was up to consumers to make the best decisions about their borrowing practices. "You’re asking me to safeguard someone from poor choices?" echoed state Representative Francis Gibson, according to the Tribune. Fellow state Representative Michael Morley voiced his dissension, stating that the bill did not meet the standards of government regulation. The bill's rejection in Utah comes approximately two weeks after a similar measure was defeated in Kentucky, where the bill's opponents said slashing the short term lending industry could cost the state more than 2,000 jobs.