House Votes to Limit Interest on Title Loans

January 16, 2014
Union Leader 
car title lending news
State legislators have voted in favor of restricting the amount of interest that title loan companies can charge customers in New Hampshire.

House Bill 562, approved on a 212-129 vote, stipulates that title loan providers may impose interest of 25 percent at most for the first month and no more than 3 percent a month after that. Rep. Kermit Williams (D-Wilton) said the plan represents a middle ground between the exorbitant rates that lenders claim they must charge in order to turn a profit and a 36 percent cap that some fear will dry up access to credit for some consumers.

The passing vote was contrary to the position of the Commerce and Consumer Affairs Committee, which had recommended keeping the current 300 percent annual interest limit in place, with a caveat that title lenders report how many loans they make and how long it took borrowers to repay them.

HB 562 has been forwarded to the Senate, where its future is unsure.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.