He adds that usury rates in Utah are market driven and based upon "whatever people are willing to pay.
While other states have put caps on the usury rates (according to Jaramillo, the cap is 36 percent in New York), Gibson says it would be impossible for a payday lender to operate in Utah with a cap of 36 percent because the business model is built around processing microloans for short periods of time, usually a week to two weeks.
One effort tried to cap the state's states usury rate at 500 percent, but no one [in the legislature] would touch it.
If the bill had reached the floor, a heated floor fight would likely have resulted over whether to pass the measure, which effectively would eliminate so-called payday and title loan lenders--businesses that suddenly flooded the state after 1999, when New Hampshire became the only one in northern New England to lift usury rates
The purpose of this article is to highlight not only the harmful effects of usury rates as we know them, but also the equally negative impact of what I call "enhanced" or "stealth" usury laws.
Italy's usury rate is updated every three months in a formula that essentially imposes a rate no higher than 1.
South Dakota's Bill Janklow has reduced hazardous waste reporting requirements for corporations and allowed credit card companies that locate in his state to set high usury rates
while paying no state corporate tax.
There are no credit bureaux and usury rates
are set by the government.