News : Poor Credit Cash Loans

Payday lender asks NH OK on high-interest loans

30 December 2008

A payday lender that says it can't make enough money under a new interest rate cap in New Hampshire now wants the banking commissioner's permission to change its loan offerings - but not the high rates it charges.

Banking Commissioner Peter Hildreth said Monday he is reviewing a request from South Carolina-based Advance America Cash Advance to provide small loans as open-ended lines of credit.

A state law that takes effect Thursday caps the interest rate on payday loans at 36% a year, which the industry has said will put it out of business.

Hildreth said Advance America wants to loan money under another section of the banking law that covers small lenders. He said Advance America would charge between 365% and 456% in annual interest depending on whether the borrower allows automatic payment on the loan.

Source: fox44.net