Letter: Cap Interest Rates on Car Loans
Cap Interest Rates on Car Loans
To the Editor:
The annual interest rate cap on most small loans is 36 percent — pretty substantial, I’d say. Then I learned that car title lenders can charge up to 300 percent per year in New Hampshire. If a borrower can’t afford to pay back the loan, he or she faces repossession of the car — a huge loss in our rural state. There are now several of these car title lenders on the New Hampshire side of the Upper Valley. The other New England states limit these loans to 36 percent, and New Hampshire should do the same.
The state Senate is currently considering HB 562, which would bring back a common sense rate cap on car title loans. It passed the House easily, with broad and bipartisan support. I urge everyone to ask their state senator to vote to pass HB 562.