Speaker Reacts To Loans Company's Appeal

Tuesday, 30 November, 2008

House Speaker Terie Norelli (D-Portsmouth) expressed displeasure upon learning that a short-term loans company is looking for a way to avoid legislation that goes into effect Jan. 2, 2009.

Advance America, with 24 branches in New Hampshire, has asked state Banking Commissioner Peter Hildreth for a ruling on whether a switch to open-ended small cash payday loans would exempt them from the 36 percent interest rate cap on so-called payday loans.

Hildreth has not yet ruled on the request.

 “The intent of the legislation was to prevent companies from charging these outrageous fees,” Norelli said. “We are talking about rates up to 500 percent.”

Advance America says it wants to use rates between 365 percent and 465 percent on a “credit line product.”
Norelli added, “Those are exactly the kind of predatory lending practices we are trying to prevent.”

Source: politickernh.com