Last year, nearly 150,000 payday loans and more than 10,250 title loans were written in New Hampshire, which sets no limits on the interest rates these lenders can charge. Some consumer advocates say title loans — with typical interest rates of 300 percent APR (annual percentage rate) — can be even more treacherous for cash-strapped borrowers than the payday loans that have been getting a lot of attention lately. After a work session last Thursday in which lobbyists far outnumbered legislators, a House Commerce subcommittee voted 4-2 to recommend killing HB 267, which would cap interest rates for payday and title loans at 36 percent. Last year, Congress passed a law capping interest rates on payday and title loans for members of the military at 36 percent, a cap that took effect Oct. Since Oregon recently passed a 36 percent interest rate cap, he said, "Every single payday lender and title lender in the state are shutting their doors and turning in their licenses. He noted several New Hampshire credit unions recently began offering short-term loans for far lower interest rates than payday or auto title loans. read more

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