Except in the event of fraud by a borrower, if a borrower defaults on a title loan:

(1)  the title lender‘s sole remedy is to seek repossession and sale of the property securing the title loan;

Terms Used In Utah Code 7-24-204

  • Fraud: Intentional deception resulting in injury to another.
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • Title lender: includes a person that:
(i) arranges a title loan on behalf of a title lender;
(ii) acts as an agent for a title lender; or
(iii) assists a title lender in the extension of a title loan. See Utah Code 7-24-102
  • Title loan: includes a title loan extended at the same premise on which any of the following are sold:
    (i) a motor vehicle, as defined in Section 41-6a-102;
    (ii) a mobile home, as defined in Section 41-6a-102; or
    (iii) a motorboat, as defined in Section 73-18-2. See Utah Code 7-24-102
    (2)  the title lender may not pursue the borrower personally for:

    (a)  repayment of the loan; or

    (b)  any deficiency after repossession and sale of the property securing the loan; and

    (3)  after repossession and sale of the property securing the title loan, the title lender shall return to the borrower any proceeds from the sale in excess of the amount owed on the title loan.

    Enacted by Chapter 236, 2003 General Session

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