DISQUS

Atty Edward K. O'Brien · 1 year ago

State Senator David Gottesman stepped up and helped his constituents, and all NH consumers, with his perserverence in getting this important law against predatory lending passed. The bill faced considerable opposition from wealthy and well-connected industry lobbyists, and getting it through the Senate speaks volumes about Sen. Gottesman's effectiveness and about his commitment to what is right for his constitutents and this state.

Curtis · 1 year ago

Actually, the passing of this bill by our legislature was a terrible diservice to the people of NH. Payday loans are a product (key word product) with a $20 fee per hundred. They must be converted to APR because the product is money. When converted to APR that is about 500% if you were to take out the loan for an entire year. Actual data submitted to the NH bank commission shows on average, customers only take out an average of four to six, 2 week loans per year..so that translates to an real APR of around 80% to 120%. Characterizing as an interest rate is one way that this product is misrepresented by those wanting to end it for political gain. Just like the banks don't have to charactize ATM Fees and overdraft "fees" as APR. If you had to convert them to APR, they would be 1000% to 1500%. Lets look at the typical attorney fees. They charge by the hour or they charge a 33% contigency fee of a settlement. Lets say you spend spend about 100 person hours on each case, on average. That's about 20 cases per year. If they had to convert these fees to an APR, they would have to disclose that thier 33% fee is really the equivalent 660% APR per year. It is the cost of doing business. If all business had to convert their profit margin into an APR, they would all be put out of business with this law. ON the predatory lending practices, it is unfortunate that this misconception continues to be used, because it is confirmed by leading economist from instituions like Dartmouth, Yale, George Mason that it is not predatory and in fact is overall beneficial to those who need it. These facts have been ignored in all of this. It is too bad that 200 good jobs of hardworking NH residents will be sacrificed due to misrepresentation of the facts.

Mike M. · 1 year ago

Good Job. And no, ATMs by your own bank are free, keep walking til you get your own bank.

36% is still hiway robbery, but there has to be a balance.

Grant · 1 year ago

You people just don't get it. Some states have already changed the percentage rate on the payday loans and the payday lenders left the state. I know some of you retards think that it would be better if the stores were shut down, but statistics show that the stores help. Here is an article that shows this:

Payday lenders are the perfect target for politicians that want to seem compassionate. After all, a $15 fee on a two-week $100 loan amounts to an APR of 390% if the loan is rolled over for a year (accruing $15 every two weeks). What could be more evil than charging poor people 390% interest, right?

A recent study by the Federal Reserve Bank of New York suggests otherwise. As reported in the March issue of Reason Magazine, the study found that the citizens of two states where payday lending is banned "bounced more checks, complained more about lenders and debt collectors, and filed for Chapter 7 bankruptcy more often"1. Comparing payday lending to other options, the Community Financial Services Association of America noted that a $100 bounced check garners a $54 fee (equivalent to 1409% APR) and a $100 credit card balance can garner a $37 late fee (equivalent to 965% APR). As the study's authors write, "Forcing households to replace costly credit with even costlier credit is bound to make them worse off".

I am called uneducated and a victim because I use payday loans, but it seems that you morons are the uneducated and you are all victims of the "lawmakers" and Senators because they are feeding you false information. What these people in the government want is to shut the payday stores down because it will help big banks. If payday stores shut down, bounced check fees go up, overdraft fees go up, and big banks get even more rich than before, and guess who benefits from that...that's right, the government, the Senators, and the lawmakers. Leave the stores alone, they provide jobs and a service that I and many others take advantage of. If you don't like the fee they charge, don't use them! Duh!