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New Hampshire considering bringing back short-term lending

Mar 24, 2011 Todd Milner

New Hampshire lawmakers are moving closer to re-establishing short-term lending and auto title loans in the state, according to a report from the New Hampshire Business Review. State Senators have yet to advance a bill, but the Business Review says it appears to be an inevitability. The moves comes after New Hampshire previously crushed the state's short term lending industry, following a 2009 bill that capped interest rates at 36 percent. Now, lawmakers want to re-institute a bill that would allow auto title loans. The Business Review reports that Senate Commerce Committee chair Russell Prescott will bring the bill back to committee before advancing it. The bill, titled the Credit Access Reform and Employment Act, would open the door for two-week installment loans for a 180-day period. Interest rates would be capped at $15.50 per $100 every two weeks. State Senator Tom DuBois told the Business Review that unlike previous short term lending bills, the new law will have stronger consumer protections, including a mandate that would prevent a person from leveraging more than 35 percent of his or her income.