Payday loan law in NH is structured to protect borrowers. The law in NH is very permissive and includes the minimum and maximum number of days that a person has to repay the loan. The minimum number of day to repay the loan is 7 days. While the maximum number of days is 30.
There is no minimum amount of money that one can borrow, but the maximum amount is $ 500. Individuals are legally required to take out only one payday loan at a time in New Hampshire.
The maximum amount of money one is allowed to borrow is $500. No rollovers are allowed whatsoever. The interest rates that the borrowers are required to pay are not stated by the law. New Hampshire generally does not state the amount of interest rates to be paid on any type of debt. This essentially means that the finance charges and APR on payday loans depend on the agreement between the borrower and lender. The lender can charge any interest rate they want, as long the borrower agrees to pay it. This has led to a lot of New Hampshire citizens being exploited by these lending institutions. NH used to have finance charges, but these charges were removed from the beginning of January 2000.
As much as the payday loan traders can charge any amount of money they want as interest, ethically they cannot exceed a certain amount. Otherwise the consumer protection Act in New Hampshire may deem the interest rate exploitative and ‘unfair’. Most payday loan companies won’t charge an interest rate above 36%.
Though charging any interest rates in New Hampshire is not illegal, the law requires that payday loan companies follow other regulations by the consumer regulation. This includes stating clearly the requirements and terms of service clearly to the client before engaging in any sort of transaction with them. Some of the things that should be clearly stated include the amount of money lent out and the finance charges that apply to it. The lender should also state what happens in case the borrower defaults in payment.
There are quite a number of traders who provide payday loan in New Hampshire. There are at least 77 of these traders. This makes NH to be the 32nd state in terms of state rankings in the number of payday loan lenders per state.
Due to the exploitative nature that payday loans in NH can be, it is important for individuals to consider other alternatives to payday loans. These include credit card, debt consolidation and personal loans. Use debt consolidation to put together all your debts so that you can be able to pay them off in easy monthly installments. Personal loans are usually less expensive though they take longer to be approved. Payday loans are preferred because of their instant nature.
So if you have urgent needs you can take a payday loan but you should consider other cheaper alternatives in future.