Wed March 21, 2012
Senate Walks Away from Payday Loans
The Senate has blocked the return of so-called payday loans.
An attempt to overturn a gubernatorial veto fell well short of the necessary votes.
The measure would have lifted the current 36% interest rate cap on small loans.
In place of that cap, Senator Matt Houde told colleagues companies could charge borrowers up to 403% interest.
“Lenders could charge consumers over $1100 to repay a $500 loan, over a 6 month term. I will let that speak for itself.”
Payday loan supporters argued that some need these loans to get through the hard times.
But the New Hampshire Local Welfare Administrators Association disputed that claim.
Welfare officials say it’s more expensive to help people after they’ve gotten trapped in debt on payday loans, then it is to help them in the first place.