Payday Pundit

As this article descibes, rate cap legislation signed by Governor Lynch recently will drive payday lenders out of the state:

The first bill (HB 267) at issue caps such loans at an annual interest rate of 36 percent.

Typically these loans are taken out for a few weeks and the compounded, annual rate of borrowing can run as high as 500 percent.

The cap means title and payday loan companies could charge no more than $1.38 on a $100 loan taken out for two weeks.

The second bill creates an 18-person commission to examine options for short-term financing and report back to lawmakers by Nov. 14, or a week after Election Day.

The philosophy of the New Hampshire State Legislature is to ban first and then study.