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Businesses denying loans at mandated lower prices,Utah payday creditors began lobbying Monday to make payments to members of the army rather than give them substantially lower prices mandated by a new national law.,That new law, that took effect Monday, caps the yearly interest payday, car title or tax refund anticipation loans at 36 percent yearly for members of the army and their families. A 2005 Deseret Morning News series discovered payday loans averaged a whopping 521 percent interest, and car title loans averaged 300 percent.,Cort Walker, spokesman for the payday advance industry's Utah Consumer Lending Association, said Utah payday lenders just aren't able to make a profit should they bill only 36 percent so they will fall to conduct business with members of the military.,'In 36 percent yearly percent rate, the overall fees we could bill are $1.38 per $100 to get a fixed-rate loan. That is under 10 cents a day,' Walker said.,'Payroll advance creditors couldn't even fulfill worker payroll at that rate, let alone pay additional fixed expenses and make a profit,''' he explained. Walker added for such lenders to reach the break-even point they need to bill about $13.70 per $100 loaned for two weeks.,'' Walker said Utah payday creditors will now ask potential customers if they are active members of the army.

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If they are,'we can't offer them a loan,' that he said.,'' While refusing loans to somebody based on such things as race or religion would violate civil rights laws, the payday advance industry's attorneys say refusing support to the army doesn't violate laws because'you can't force a business to enter into a transaction that causes it to get rid of money,' Walker said.,Jerry Jaramillo, a supervisor with the Utah Division of Financial Institutions, said the nation is starting to examine the new law and its consequences. 'People who go to payday loans find themselves deeper in problem and debt compared to when they started, then they ask their church, army aid groups, household or other people for help places they need to go first.' ,The Pentagon issued Monday a media release stating it hopes the new 36 percent cap will help military families, also said payday and auto title loans'often result in a cycle of past-due debt' as households cannot refund them on time, and just take out additional loans to pay previous loans.

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