Tag: New Hampshire payday loans


Payday Loans New Hampshire Laws and Legislation

Update 2009
Payday loan company Advance America announced it plans to close the 24 payday loan centers it operated in the State of New Hampshire. The decision to close the payday loan centers in New Hampshire comes after approval of payday loan legislation that went into effect on January 1, 2009 that effectively prohibits the offering of the cash advance product in that state, and follows the Company’s previously announced decision to discontinue offering its line of credit product in New Hampshire as a result of an agreement with the state’s Bank Commissioner.

Commenting on the closure of its payday loan centers in New Hampshire, Advance America’s President and Chief Executive Officer, Ken Compton, said, “The recent law that went into effect in New Hampshire imposed a 36% annual percentage rate cap on payday loans, resulting in an effective ban of the industry there. Unfortunately, eliminating the payday loan product as an option does not eliminate the need for short-term credit in New Hampshire, it simply eliminates a sensible financial choice for thousands of hardworking people, and forces them into higher cost alternatives such as fees for bounced checks or late payments and risky loans from unregulated internet lenders. We are disappointed that a majority of legislators and Governor Lynch chose to take away a viable, regulated short-term credit option from New Hampshire residents and put hundreds of employees out of work, particularly during a period of broad economic instability.”


Payday Loans:Fair & Balanced Media Coverage

Wow, what a shocker! The payday loan industry got a little fair coverage by the New Hampshire Sentinel Post regarding the pros and cons of the payday loan product.

Excellent arguments can be made for and against so-called payday lending.

Sometimes you might need $100 or so for two weeks just to get over a rough patch, a miscalculation in the family finances, so to speak. You can hardly go to the bank for that, and anyway banks don’t make two-week loans. And maybe your sister-in-law is tapped out. So you borrow the money from a payday lender. You pick it up on a Monday, and you pay it back a week from Friday, plus a $20 fee. Sure, that interest would add up to 500 percent on an annual basis, but you’re not borrowing the money for a year. And nobody’s going to loan you $100 for two weeks and charge a nickel. There’s no business model in that. So you willingly pay the $20. No harm done.”

They go on to say: “In other words, payday lending performs a service, and it poses a threat. Should it be outlawed? How far should the state government go in protecting people from their own potential folly?

They continue: “Ken Compton is CEO of Advance America, the nation’s biggest payday lender. His company has (or maybe had) stores in 20 New Hampshire communities, including Keene. On January 15, 2008, he made a persuasive case for payday lending, in a column published on this page.

“The measured use of payday advances allows consumers a firm footing to overcome unexpected financial circumstances,” Compton wrote. “Our customers are educated and appreciate why such a product, with a comparatively low one-time fee, makes more sense than accepting the costs and other consequences related to bouncing a check, missing a credit card payment or neglecting an outstanding bill. Payday advances are a valuable tool in our customers’ financial tool belt.”

Finally, The Sentinel Post offers some pretty sound advice: “Actually, Compton’s best option now, if he wants to do business in New Hampshire, is to go back to the Legislature and try to get the interest cap repealed or revised. He has fought the good fight, and lost. In the words of another fellow with some knowledge of personal finance: “You got to know when to hold ’em, know when to fold ’em, know when to walk away and know when to run.”

Read the entire article here: SentinelSource.com

Do you think this fair and balanced media coverage is a portent of the future? Or is it an anomaly? What do YOU THINK? Leave a comment!


Advance America Takes it in the Shorts in New Hampshire

There’s a new update regarding payday loan legislation in New Hampshire over at PaydayLoanLegislation.com

Bottom line, Advance America’s new payday loan styled product is not gonna fly. Of course Advance America plans to appeal the ruling by the New Hampshire banking commissioner so we haven’t seen the end of the creative genius at Advance America.

We wish them the very best of luck!

Consumers need all the choices that can be made available in an effort to provide multiple financial product selection at competitive prices.