SB 331 – AS AMENDED BY THE SENATE
03/22/06 1376s
03/22/06 1492s
2006 SESSION
08/09
SENATE BILL 331
AN ACT relative to certain small loans.
SPONSORS: Sen. Foster, Dist 13; Sen. D'Allesandro, Dist 20; Sen. Odell, Dist 8; Rep. Rosenwald, Hills 22; Rep. D. Cote, Hills 23
COMMITTEE: Banks and Insurance
This bill establishes a limit on the percent of interest for certain small loans.
This bill also prohibits the application of charges other than interest to title loans.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/22/06 1376s
03/22/06 1492s
06-2349
08/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to certain small loans.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Findings and Intent. The general court finds that the rates of interest charged by many title loan lenders and payday lenders are unreasonable and predatory. Statistics available to the general court demonstrate some title loan lenders charge annual percentage rates of interest of up to 350 percent and payday lenders are charging up to 1000 percent. The general court recognizes that due to the extremely short term of title loans and payday loans, documentation fees of even a nominal amount will cause such loans to have a high rate because the fees are included in the annual percentage rate calculation. However, the rates currently charged are unfair and improper. Therefore, to continue to make these credit products available to individuals who are otherwise unable to obtain credit, rates permitted may be higher than are usually seen in other credit transactions but must be capped at reasonable rates.
2 New Paragraph; Provisions Applicable to Payday Loan Lenders. Amend RSA 399-A:13 by inserting after paragraph XVIII the following new paragraph:
IX. A lender shall not make a loan to a borrower who currently has outstanding or who has had outstanding within the previous 60-day period a payday or title loan. As part of its application process for such loan, a lender shall obtain a written statement under oath from the borrower certifying the borrower does not currently have outstanding and has not had outstanding a payday loan or title loan within the previous 60-day period.
3 New Paragraphs; Interest Only on Title Loans. Amend RSA 399-A:14 by inserting after paragraph IV the following new paragraphs:
V. Apply any other charges or fees to title loans other than interest. Title loans shall incur interest only.
VI. Make a loan to a borrower who currently has outstanding or who has had outstanding within the previous 60-day period a payday or title loan. As part of its application process for such loan, a lender shall obtain a written statement under oath from the borrower certifying the borrower does not currently have outstanding and has not had outstanding a payday loan or title loan within the previous 60-day period.
4 Effective Date. This act shall take effect 60 days after its passage.