As expected, the New Hampshire House has voted to dramatically reduce the fee payday lenders can charge to borrow money.
New Hampshire Public Radio’s Dan Gorenstein reports.
Right now, if you want to borrow $100 from a payday lender, you have to pay the loan back, plus a $20 fee, in two weeks time.
By a 207-124 margin, House members voted to drop that fee to about $1.50.
A coalition of consumer advocates and state agencies, including the Banking Department backed the measure.
Commissioner Peter Hildreth says the problem with payday loans is that it’s too easy for a person to get caught in a cycle of debt.
:57 more and more of these people got trapped in this spiral downwards, where they end up paying thousands of dollars in fees, 5 or 6 times what they borrowed and that’s not right.
House Bill 267 now moves on to the Senate.
Lobbyists for the industry say payday lenders can’t afford to stay open if the legislation becomes law.
Dick Bouley represents the lenders.
He says he is going to try to convince lawmakers that payday loans are much safer than other ways of getting quick cash.
:28 I know that you can still get out on the internet and get 30-50%. I don’t think that is in the interest of the people in NH.
Bouley says he will tell Senators that the industry is willing to compromise and reduce the fee for borrowing money.
Right now, HB267 looks like its got sufficient support to pass the Senate.
That chamber issued a press release saying a bill similar to HB267 has bi-partisan support among 14 Senators.
But lobbyist Bouley isn’t worried.
2:22...This is no way near over.
For NHPR News, I’m DG.
