Who will be holding the “control button” for short-term loan companies like payday lenders and auto title loan companies? Payday lenders are keeping an eye on particular states that have implemented payday loan regulations, however many thought the recent financial regulatory bill would supersede the states decisions. This is better news for the states that want to have control over the lending practices that their state payday lenders conduct. What will be the future of individual state lending practices? Will states continue to fight to be able to control what their residents do? Many are keeping an eye on this, and we will be keeping an eye on things ourselves. Leadpile works a lot with payday loan lenders and hopes that any changes that happen will result in positive things for both the lenders AND many consumers that need payday loans. Stay tuned……..

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………….