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N.H. league testifies before state passes 36 payday cap
MANCHESTER, N.H. (2/18/08)--New Hampshire has passed a 36% cap on annual interest rates for payday and title loans, putting a stop to 400% interest and the payday lending cycle of debt.The New Hampshire Credit Union League recently testified before the state legislature before the measure’s passage. New Hampshire Gov. John Lynch promises to sign the bill into law. The New Hampshire Senate passed a bill closely aligned with the House version Thursday. “The league testified on payday lending options that credit unions provide to consumers at both the hearings on the House bill and the Senate bill,” Rob Kimmett, senior vice president with the New Hampshire Credit Union League, told News Now. “These options were part of the debate that the Senate held on the floor prior to voting on the bill.” Roughly a dozen states are enforcing an interest rate cap at or around 36%. About 90% of payday lending business is generated by borrowers who have five or more loans per year, according to the Center for Responsible Lending. The average borrower has more than eight transactions per year for a loan that is marketed as a two-week loan, so borrowers end up routinely paying more in interest than they borrowed, the center said.
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