Smart Money

How do title loans work in Utah?

Cory B

September 13, 2023



min read

How do title loans work in Utah?


Title loans are short-term loans offered with a vehicle title as collateral. It provides a solution for individuals needing cash by leveraging their vehicle's value. That said, these loans often come with high-interest rates, so it’s important to understand how they work.


Legality of Title Loans in Utah


First, it's crucial to mention that title loans are legal in Utah, without any cap on the financial amount that can be borrowed (1). This means lenders in Utah can provide a loan proportional to the full value or more of your car; it depends entirely on their risk appetite and your ability to repay the debt.


Rules and Regulations 


Utah's legislation offers no specified maximum loan terms, allowing lenders to set terms based on contractual agreements with the borrower. Similarly, there's no cap on the interest rates or fees charged by these lenders (2).


Utah state law, however, demands that all lenders be registered under the Utah Department of Financial Institutions. This rule aims to ensure all lenders' compliance with the stipulated regulations to maintain a fair lending environment (3).


The obligation to Disclose Loan's Terms and Conditions


Under the Truth in Lending Act, lenders are obliged to disclose the terms and conditions of the loan agreement to the client before signing the contract, which includes the APR, total finance charge, and the payment schedule (4). 


Options If A borrower Unable To Repay the Loan


Generally, if a borrower fails to meet their repayment schedule, the lender has the right to repossess the vehicle to recover the loan amount.


While title loans can provide fast access to cash at a moment's notice, borrowers must carefully evaluate the terms and conditions, interest rates, and fees. Always consider alternative loan options, such as credit card loans that leverage on your car's value, before opting for a title loan. You can see how Yendo compares here.





Disclaimer: Yendo is not a provider of financial advice. The material presented on this page constitutes general consumer information and should not be regarded as legal, financial, or regulatory guidance. While this content may contain references to third-party resources or materials, Yendo does not guarantee the accuracy or endorse these external sources.