Car Title Loans on the Comeback in New Hampshire

In 2009 lawmakers put a limit on the interest rate that can be charged for a payday or car title loan.  This law put many lenders out of business.  For what they were charging in interest for the loan did not cover all the expenses of providing it.  Now the law has changed again and payday and car title loans are back in New Hampshire.

The law that put many loaners out of business maxed out the interest rate at 36 percent.  This may seem like a lot but one needs to remember these are small loans and they have to be processed.  Many lenders just could not keep their doors open because of this law. Many in New Hampshire feel that the whole point of the law was to close these businesses.  There was enough need for this loans that the law was changed again, allowing these businesses to open back up and do business again.

The change in the law is allowing the payday or car title lender to charge 25 percent interest a month.  This may confuse some people, 25 is lower than 36.  The 36 percent was an overall interest rate; the 25 percent interest rate is per month.  Most of these short term loans only last about two weeks to one month, so this new interest rate is not hurting the consumer. 

It seems as though lawmakers have found neutral ground for the interest rate.  They found a way that the business can make money without the consumer having to pay a ridiculous amount.  It makes one wonder if other states will follow and do the same. 

Most lawmakers will tell you that they are just trying to look out for the consumer.  This is one way they can protect the consumer without putting people out of business and causing them to lose their income.   They have found a balance that allows the consumer to get the help that they need without overpaying and it keeps the owner in business.

Thanks to the law change the residents of New Hampshire will have more locations for payday and car title loans.  Many of the business owners who already have payday and car title loan businesses have plans to open up more storefront locations in the coming months.  Now that they are able to do business and stay open the have decided to open more locations to meet the needs of the people. 

Not all of the previous storefront locations that were open are going to be open right away.  Some will take time to come back, because the owners had lost a good deal of money when they had to shut down.  Some owners want to test the waters with one or two locations instead of opening all their old locations right away.

The residence of New Hampshire will have more options in the coming months of what location to get their payday or car title loan. The law has been changed in the favor of both the consumer and the lender.   Now the two can do business together without one taking advantage of the other in anyway.  Many people are happy to have these services back because they need them from time to time.

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