Leadpile’s Blog

A year ago in New Hampshire payday and title loans were outlawed to “protect” consumers from the interest rates. This however did not completely stop all lenders from being able to offer additional types of short-term high interest loans to consumers.
Today the house will vote to amend the proposed bill which would put a 36% cap on annual interest rates, including some fees for any loan under $10,000. This would apply to loans and personal lines of credit. According to the Concord Monitor the vote is for a bill meant to close what some consider to be a loophole in the law. As there as been much controversy and disagreement regarding the bill which was originally discussed in the house two weeks ago with a recommendation that a bipartisan majority believed the bill to be overkill. The new proposed amendment to the bill would cap the interest rates at 36% while allowing additional membership fees, late fees and participation fees. These fees could only be charged one time and the banking commissioner would have the authority to determine what fees are fair.
Often time consumers with bad credit or in a time of need have no where else to turn for a quick loan and these lenders were filling the demand for these loans. If the loans were taken away, this would leave many people without other options. Hopefully, a decision can be agreed upon that not only has the consumers best interest in mind regarding the interest rates, but also in times of need and being able to access quick short term loans when necessary. Leadpile is watching what happens in NH………….

Payday loans are something that we discuss a lot on this blog, and are happy to let our readers know that we are expanding our payday loan/cash advance market into Canada. There was a high enough demand to warrant Leadpile to venture into this fairly unsaturated market. We are proud to be able to help those in Canada get connected with those lenders that want to provide them with one of these short term loans. If you are already a Leadpile publisher, you can access this new offer in your seller account. If you are not currently a part of the Leadpile Marketplace, contact us immediately!!! We look forward to this great new market that we are now venturing into!

With all the regulations going on with different states, I thought this was an interesting article about the effects banning payday loans had on consumers in NC. According to The Community Financial Services Association (CFSA) website, banning payday loans in the state of NC is affecting consumers. The reality is that most that are trying to get rid of payday loans in these different states, have never needed a payday loan.
Understanding fully what payday loan consumers are going through, does not seem like a reality to those trying to ban them in the different states. Do those that are trying to ban the payday loans understand what taking them away is going to do? Do they understand that some credit cards are a much more expensive option for the consumers? What are some other options available to consumers in place of a short term payday loan? Are they prepared to offer these other alternatives to the consumers, to help them get out of this temporary situation?
In the state of NC, there seems to be some effects with the fact that payday loans were banned there. According to this CFSA article, “In fact, respondents’ answers to the survey clearly show that the elimination of payday loans in North Carolina did nothing about the demand and forced consumers to replace payday loans with costly, less desirable and even dangerous options.” Overall, states with either pending regulations or those states trying to regulate, should maybe look at the overall picture of the payday loan industry. Some don’t CHOOSE to get a payday loan… they might have no other option. Leadpile Lead Exchange understands their are consumers needing a loan to fix a temporary financial situation, and we have the lenders/buyers available to provide that much needed loan to the consumers.