New Hampshire Payday Loan Laws
Though payday lending is legal in New Hampshire, New Hampshire payday loan laws have strictly prohibited extremely high rate of interest on short-term cash advances. Besides that, several other restrictions have also been imposed on lenders with an objective to protect the rights and interests of consumers. Though some of the important points of the state laws have been outlined below, if you want more detailed information, you can contact the New Hampshire State Banking Department. Their fax number is (603) 271-0750, phone number is (603) 271-3561, and address is 64B Old Suncook Road Concord NH 03301.
Criminal Actions Not Permitted
Failing to make the repayment on payday loans is not treated as a criminal activity in this state. If you are unable to pay off the outstanding loans in your name, your lenders cannot file a criminal lawsuit against you unless you borrowed the loans through some fraudulent activities or with a criminal intent. However, it is important to note that New Hampshire payday loan laws allow lenders to file a civil lawsuit against the borrowers who are not paying off their loans in time.
Collection Fees Are Not Specified
State laws have said nothing specifically about how much collection fees can be charged on payday loan accounts that are in collection status.
Rollovers Or Renewals Not Permitted
The good news is that New Hampshire do not allow any types of rollovers or renewals or consolidation or refinancing of short term cash advances if the borrower doesn’t pay off the outstanding debt on the set due date. However, borrowers still have the option to obtain additional cash by borrowing a new loan from the same lender, but they must first pay off the previous
loan in full with the borrowed money.
Only One Outstanding Loan At A Time
As per New Hampshire payday loan laws, an individual borrower must not have more than one outstanding payday loan in his/her name at one time. If you already have an outstanding loan in your name and another lender issues you a second payday loan, it will be considered as illegal and certain legal actions can be taken against the lender. However, you will still have the obligation to repay that loan, but only the principal amount without any interest.
Cooling Off Period
Even if you have made the full repayment on a payday loan, you will have to wait for at least sixty days before you can qualify for another cash advance. This 60-day cooling-off period will be counted right from the date of actual repayment (not necessarily the set due date).
Interest Rate And Other Fees
As per New Hampshire payday loan laws, the maximum annual percentage rate that can be charged on short term cash advance must not exceed 36% per annum. Even the limit on additional financial charges is also very low. On a $100 of loan issued for a 14-day period, lenders can charge a maximum of $1.38 as finance charges (processing fee, approval fees, or any other such items).
The state laws have also imposed certain limit on the repayment period for these loans. A short term cash advance in New Hampshire must be issued for at least seven days and for a maximum thirty days.
As mentioned before, only one payday loan is allowed at a time under New Hampshire payday loan laws and the maximum amount of cash advance that can be issued is $500.
Category: Payday loans