Under the bill, lenders could charge 15 percent monthly interest.
Governor Lynch’s veto message notes the annual percentage interest rate on these so-called installment loans translates to more than 400%. Lynch says allowing such rates would hurt New Hampshire families, communities and the economy.
Lynch’s message also says the bill limits the state’s regulatory authority.
Lenders would get advance notice before the banking department conduct exams and regulators would have reduced power to levy administrative fines.
But supporters of the measure say it gives consumers a needed credit option.
Earlier this year, lawmakers overrode a separate Lynch veto of a bill that did away with the state’s 36 percent cap on interest on loans secured by car titles.