Cash Loan Reform in New Hampshire
New Hampshire cash loan laws might be getting a face-lift that will make short-term cash loans more accessible to the people who need them. Current laws in the state of New Hampshire cap interest rates at 36% with no rollovers and a probation period of 60 days between loans. Some newly proposed legislation might make these cash loans more accessible to New Hampshire residents.
Interest rates as low as 36% restrict cash lenders from offering their services to the people who need them. Cash loans are popular with people who have poor credit histories – poor credit that keeps them from accessing bank and credit card services that would otherwise help their financial situation. Because cash loans and cash advances are offered with no credit check necessary, they pose a big risk to the organizations who lend and approve them. Cash lenders often have higher interest rates to mitigate this risk. If you have access to traditional bank loans and credit cards, a cash loan will cost you significantly more in annual percentage rates. For those with bad credit who can’t access traditional bank services, cash loans can actually cost significantly less than the alternative of bank overdraft fees or penalties on late credit card or utility bill payments. Consumers who depend on emergency cash loans can’t afford to have restrictive access to them.
Proposed legislation in New Hampshire would lift some of the restriction on interest rates that lenders can charge. Instead of a 36% interest rate, lenders could charge a $15.50 fee every two weeks for the duration of the loan. Since most cash loans are only borrowed for about two to four weeks, customers won’t be overcharged interest, but lenders can still make enough profit from interest to cover the financial risk of cash lending. New laws would also allow consumers to rollover their cash loans if needed.
If you’d like to see restrictions loosened to increase access to affordable cash loans, contact your state representative today and make your opinion heard!
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