CONCORD, N.H. – The state House yesterday approved a 36% ceiling on payday loans, which is expected to force payday loan companies out of the state if it reaches final passage. The bill must still be approved by the state Senate.
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The state’s banking commissioner and payday lenders had told lawmakers that the companies would close if interest rates were capped. The plan approved on Wednesday caps the annual rate at 36% on payday advances and vehicle title loans.
The state is the latest entity to clamp down on payday lenders. Last October, the Department of Defense established rules based on new legislation that caps payday loans to military personnel at the same rate, 36%.
Several other states are also debating payday loan caps.
