Cash Advance New Hampshire
If you live in New Hampshire, chances are you won’t be able to find a cash advance lender in your neighborhood. Since 2008, cash advance laws have been incredibly strict in New Hampshire – so strict that most lenders have shut their doors. There is simply no way for a lender to turn a reasonable profit in New Hampshire. Read on for specifics on New Hampshire’s industry-ruining cash advance laws.
New Hampshire Cash Advance Regulations
In New Hampshire, the maximum loan amount is $500. Your loan term can be anywhere from seven days to 30 days. The finance rate and fees must result in no higher than a 36-percent APR.
You might think that charging a 36-percent APR should be enough to keep a cash advance lender in business. Well, let’s do the math. If you were to take out a 14-day, $500 loan, the total interest would be $6.92. At that rate, how many loans would the lender need to lend out before they made enough to just pay their power bill? Of course, you have to factor in the defaults. If just one person defaulted on a $500 payday loan, it would take the interest of nearly ten similarly sized loans to cover that one default. There goes your power bill money. There goes the cash advance industry in New Hampshire.
The state legislators knew what they were doing. They purposely set the APR rates so low that the cash advance lenders would be forced to leave the state.
New Hampshire Payday Loan Regulations
Loans go by different names, but sometimes they mean the same thing. That’s the case for cash advances and payday loans. These two financial products are one in the same and are both regulated by the same laws.
- How Payday Loans Work – Some lenders offer quick cash to those who have trouble finding credit elsewhere. This type of loan is funded in as soon as one business day and is usually meant to be paid back within a couple of weeks.
- Maximum Amount – Lenders can offer up to $500.
- Repayment Extensions – Rollovers are not allowed, but borrowers can receive a new loan if it fully pays off the old one.
New Hampshire State Economy
New Hampshire is known to be an affluent state, not so much because it boasts a high average income rate, but because the state has a low poverty rate. According to the US Census Bureau, the poverty rate from 2009 to 2013 in New Hampshire was only 8.7-percent. The national average for that same time period is 15.4-percent. This might be one reason why legislators thought the state could do without cash advances.
Thanks to a law passed in 2008, it’s very hard to find a cash advance lender in New Hampshire.
Requesting Title Loans in New Hampshire
New Hampshire is one of the sixteen states that permits title loans at triple-digit APRs. According to the Pawnbroker/Lender Act (N.H. Rev. Stat.§ 399-A) that went into effect in 2015, residents of the state are permitted to take out a car title loan with a maximum amount of 10,000. There is also a maximum charge of 25% interest per month, plus a lien fee. A lien fee is a charge on a title to ensure the secure payment of the debt owed.
New Hampshire residents should also note that loan terms are limited to one month for the original term, however, borrowers are allowed up to 10 renewals, contingent on them paying 10% of their previous loan.
Important Facts for Consumers
Experts often caution consumers who are interested in title loans to seek alternate options, due to the high-risk nature of such short-term loans. These loans often carry high-interest rates and even steeper rollover fees. For example, most title lenders will charge an average of 25% interest per month, which is about 300% APR, while the average cost of a typical credit card is 16 to 26% APR. Such high fees can cause borrowers to rollover multiple loans and can trap them in an unsustainable debt cycle.
And because the loans are taken out against a borrower’s car, failure to meet loan terms can result in the repossession of the vehicle used as collateral. In fact, a 2016 report by the Consumer Financial Protection Bureau (CFPB) found that one-in-five auto loan borrowers lose their vehicles to repossession.
Still, auto title loans can prove useful for consumers who are in urgent need of cash and lack alternate resources for borrowing money. New Hampshire residents can apply at a storefront lender or online to see if they are approved. Lenders may require that applicants present a copy of their state-issued ID or driver’s license, the title of the vehicle to be borrowed against, proof of income or bank statements, as well as proof of residence.
*OpenCashAdvance.com strives to present accurate information on each state’s regulations; however, we do not guarantee accuracy of data as presented. Please contact your state’s department of finance or visit your state’s official website for the most accurate information and inquiries. You can find your state’s site here: www.nh.gov/banking