Utah, a late bloomer on foreclosure and delinquency filings, has apparently become the latest sand state and remedies being put forward today by a Salt Lake City foundation and state lawmakers need careful study, the head of the Utah League of Credit Unions said Wednesday.
In the past, said Scott Simpson, league president/CEO, Utah often lagged the rest of the country when economic downturns occurred but now the state seems to have caught up with rising bankruptcies and foreclosures triggering state discussion about ways to tamp negative trends.
It is unfortunate, he said, that Utah is now another sand state joining the likes of California, Nevada, Arizona and Florida but a proposal for a voluntary debt resolution being aired at a press briefing led by House Speaker David Clark, Gov. Gary Herbert and AAA Fair Credit Foundation requires scrutiny.
Simpson said the league staff needs time to review the foundation documents before endorsing the consumer endeavor, which includes a "Responsible Debt Relief Assessment" plan linked to consumer counseling agencies. The relief plan is aimed at minimizing collection costs and making it more humane for debtors to pay off loans, said a media advisory.
The debt relief package is being touted by Robert Manning, a Rochester N.Y. consumer finance educator and author of "Credit Card Nation: America's Dangerous Addition to Credit."