payday loans

New Hampshire Attorney General Michael Delaney is joining 40 other state attorneys general in urging congress to crackdown on predatory lending practices.

Delaney today signed a joint letter urging Federal lawmakers to oppose the Consumer Credit Access, Innovation and Modernization Act.

 

Sen. John Gallus,  a Republican from Berlin who represents the North Country, was among those voting last week not to override Gov. Lynch’s veto of so-called payday loans.

As NHPR reported “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.

  

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.