New Hampshire Might Bring Back Payday Loans

By: Javi Calderon
New Hampshire Might Bring Back Payday Loans

In 2008 the New Hampshire State legislature passed a law championed by Gov. John Lynch designed to lower the interest rates on payday loans and other short-term credit option s to 36%.

Within nine months most of the companies that offered payday advance loans were out of business.

On Wednesday 27th, 2011 the New Hampshire House of Representatives passed a bill intended to give citizens access to short term credit options. SB 57 would allow for loans costing up to 25% of the borrowers’ monthly income, thus opening the door for payday or car title loans.

A proponent of the bill, Representative Ken Gidge believes it should not be the authority of government to inhibit how citizens choose to handle their finances.

On the other hand, critics believe these loans can trap a borrower in a lending cycle.

The bill passed through the House by 4 votes, with a total of 180-171.

Governor Lynch, a proponent of the original cap, claims to have concerns on the bill and will take his time considering it.

The House also passed a bill that would allow car buyers to register their car with auto dealers, not just at their local town hall. Dealers would only be allowed to register a car at the time of sale, and all fees for the registration would be handed over to the town/city.

Car dealerships are allowed to register vehicles in 30 states.

The bill now goes to the Senate where is must be passed before going on to the Governor for final approval. If signed, the law will have a 1 year probation period, after which the motor vehicles director will determine whether or not the laws’ goals have been achieved.

While critics say the bill has too many variables, supporters state that since city halls are only open 9-5, the bill would allow citizens to handle their car registration at a convenient time and not have to miss work.