Number of Rollovers

My mother has a payday loan that originated in November 2009. She has been paying $150 every two weeks via automatic renewals and has never paid the loan in full and done a re-loan. The loan is through a company named LoanPoint USA. I contacted them and asked about the limit on the # of renewals on the loan - my mother has now paid $1650 on a $500 loan. I was told that the loan is out of Utah and there is no limit to the # of renewals. Is this correct? I was immediately suspicious when the offered a settlement in which she would have to pay nothing additional but just sign the documents stating she accepted a settlement.