David Smith, D-Nashua, vowed Thursday to fight a House working group that recommended death for his legislation to cap at 36 percent what payday and title lenders can charge for short-term consumer loans. A majority on the House Commerce Committee endorsed an industry-pushed plan to limit payday loans to $15 on $100 for a two-week note, which is an annual interest rate of 360 percent. Most on the subcommittee also embraced the title industry’s offer to cap their loans at $22 per $100 a month or 264 percent annually. A $100 loan plus the $20 finance charge borrowed for two weeks works out to a 521 percent annual interest rate. Service Credit Union of Portsmouth already is granting two-week loans that range up to 18 percent annually depending on the borrower’s credit rating. read more

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