Closed-End Consumer Credit Debt

Utah Code tit. 70C, ch. 70C-3

in effect

Utah Code § 70C-3-101 Prepayment of debt.

70C-3-101. Prepayment of debt. (1) As used in this section: (a) "Prepaid finance charge" means the same as that term is defined in 12 C.F.R. Sec. 1026.2. (b) (i) "Prepayment penalty" means a contingent fee that a creditor assesses against a debtor for paying all or any portion of an outstanding debt before the debt's scheduled due date. (ii) "Prepayment penalty" does not include a prepaid finance charge. (2) A debtor may prepay the unpaid balance of a closed-end consumer credit debt without a prepayment penalty. (3) (a) The unpaid balance of a closed-end consumer credit debt shall consist only of: (i) any unpaid earned finance charge; (ii) the unpaid principal of the debt; and (iii) any delinquency or deferral and other allowable charges that may have been assessed before to prepayment. (b) Except as provided in Subsection (3)(c), the earned finance charge and unpaid principal shall be calculated only by the actuarial or United States Rule method from the date the credit is first extended to the debtor, but the creditor may accrue finance charges during any delay period pertaining to a right of rescission. (c) A prepaid finance charge that the creditor charges on closed-end consumer credit debt is nonrefundable if the debtor prepays unless the parties expressly agree otherwise. (d) Any costs, charges, or fees paid to third parties in connection with setting up the credit are not subject to rebate to the borrower unless the creditor becomes entitled to a rebate of any part of the cost, charge, or fee as a result of the prepayment. (4) (a) If a creditor accelerates the maturity of a closed-end consumer credit debt for any reason and obtains a judgment, the creditor shall calculate the unpaid balance of the debt, less any legal offset, as if the debtor had paid the debt in full on the date the court entered the judgment. (b) The judgment shall accrue interest at the rate the parties agreed to for the debt. Amended by Chapter 278, 2026 General Session

Utah Code § 70C-3-102 Balloon payment.

70C-3-102. Balloon payment. If any scheduled payment of a closed-end consumer credit debt is more than twice as large as the average of all earlier scheduled payments, the debtor has the right to refinance the amount of that payment at the time it is due if the creditor is still offering that type of credit and the debtor is credit worthy. Credit terms may be no less favorable than those offered to the general public by the creditor for the same type of credit at the time a request for refinancing is accepted. Enacted by Chapter 159, 1985 General Session

Utah Code § 70C-3-103 Delinquency charges -- Conversion of account.

70C-3-103. Delinquency charges -- Conversion of account. (1) With respect to a closed-end loan, a delinquency charge may not be assessed on a payment that is a payment in full for the scheduled installment period solely because of an unpaid delinquency charge relating to an earlier installment. (2) (a) With respect to a closed-end loan other than one in which the finance charge is based on unpaid daily balances, if two payments or parts of two payments are past due for more than 10 days, the lender may convert the loan to one in which the finance charge is based on unpaid daily balances. (b) In the event of conversion under Subsection (2)(a): (i) the creditor shall calculate the unpaid balance of the debt in accordance with the provisions governing rebate on prepayment under Section 70C-3-101 as of the due date of the first delinquent installment; and (ii) after the conversion the creditor may collect a finance charge not exceeding the annual rate agreed upon by the parties. Amended by Chapter 162, 2005 General Session

Utah Code § 70C-3-104 Class actions.

70C-3-104. Class actions. (1) In accordance with this section, a creditor may contract with the debtor of a closed-end consumer contract for a waiver by the debtor of the right to initiate or participate in a class action related to the closed-end consumer contract. (2) To contract for the waiver described in Subsection (1), the creditor shall disclose the waiver: (a) to the debtor; (b) in the closed-end consumer contract; and (c) for a closed-end consumer contract entered into on or after August 1, 2006, in: (i) bold type; or (ii) all capital letters. Enacted by Chapter 172, 2006 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title70C/Chapter3/70C-3.html?v=C70C-3_1800010118000101Fetched: 10/26/2026