Legal Status: Legal

Citation:
N.H. Rev. Stat. Ann. § 399-A:1 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-30 days
Maximum Finance Rate and Fees: Not Specified (After default: 6% per year)
Finance Charge for 14-day $100 loan: No Limit
APR for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot refinance, renew, extend; borrowers can renew to obtain additional cash but prior loan must be paid in full from proceeds of new loan and marked as such)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees:
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: New Hampshire State Banking Department
Address: 64B Old Suncook Road Concord NH 03301
Phone: (603) 271-3561
Fax: (603) 271-0750

Applicability: Regulation of small loans, title loans and payday loans.

Exemptions: This chapter shall not apply to any person lawfully engaged in business as permitted by the laws of this state or of the U.S. relative to banks, trust companies, insurance companies, savings or building and loan associations, or credit unions, or to loans made by them, nor shall this chapter apply to any person engaged solely in the business of making loans for educational purposes or to the loans made by such persons.

Loan terms: Loan duration must be 7-30 days and loan must not exceed $500. No maximum interest rate specified for the term of the loan. After due date, loan shall not accrue interest at rate greater than 6% per year.

Licensing Requirements: Applicants shall pay a $450 license application fee of $450 plus $450 for each branch maintained in this state. The department shall complete a background investigation and criminal history records check on the applicant’s principals and any person in a similar position or performing similar functions. Each applicant shall demonstrate that it has available for use in such business at each location specified in the application, at least $25,000, or in the case of a licensee, has such amount available or actually invested in loans made under this chapter at each location or has posted a continuous surety bond in the amount of $25,000 in the form and under the terms determined by the commissioner.

Required Disclosures: Persons subject to or licensed under this chapter shall abide by applicable federal laws including the TILA. A lender in the business of making small loans, payday loans, or title loans shall include in every loan contract a notice, printed in type size equal to at least 12-point type, stating that the consumer or the consumer’s attorney may file a complaint with the commissioner. Each lender shall conspicuously post in its licensed location a schedule of interest charges, with examples using a $300 loan payable in 14 days and 30 days. Payday loans shall incur interest only. Each payday loan shall be evidenced by a written loan agreement, which shall be signed by the borrower and a person authorized by the lender to sign such agreements and dated the same day the loan is made and disbursed. The lender shall give a duplicate original of the loan agreement to the borrower at the time of the transaction. Before entering into a payday loan, the lender shall provide each borrower with a pamphlet, in form consistent with regulations promulgated by the commissioner, explaining in plain language the rights and responsibilities of the borrower and providing a toll-free number in the banking department for assistance with complaints. Before disbursing funds pursuant to a payday loan, a lender shall provide a clear and conspicuous printed notice to the borrower indicating that a payday loan is not intended to meet long-term financial needs and that the borrower should use a payday loan only to meet short-term cash needs.

Prohibited Practices: No payday lender shall issue misleading, or deceptive statements or representations with regard to the rates, terms, or conditions. No interest shall be paid, deducted, or received in advance. No person shall take any confession of judgment or any power of attorney running to himself, herself, or any third person to confess judgment or to appear for the borrower in a judicial proceeding; nor take any note, agreement, or promise to pay which does not disclose the date and amount or maximum credit line of the note or agreement, a schedule or description of the payments to be made thereon, and the agreed charges or rates of charge; nor take any instrument in which blanks are left to be filled in after the loan is made. No person shall include any of the following provisions in a small loan, payday loan, or title loan contract: a hold-harmless clause; a confession of judgment or other waiver of the right to notice and the opportunity to be heard in an action; an agreement by the consumer not to assert any claim or defense arising out of the contract against the lender or any holder in due course; an executory waiver or a limitation of exemption from attachment, execution, or other process on real or personal property held by, owned by, or due to the consumer, unless the waiver or limitation applies only to property subject to a security interest executed in connection with the loan; or a clause permitting the continuation of interest after repossession of the consumer’s motor vehicle. No person shall be permitted to accept real estate or household furniture presently in use on loans of $2,000 or less as collateral on a loan. No charge for any examination, service, brokerage, commission, or other fee shall be directly or indirectly made or contracted for on payday loans except the lawful fees, which may be collected when such loan is made, or at any time thereafter and except the reasonable costs, charges, and expenses, including court costs actually incurred in connection with a repossession of the security or an actual sale of the security in foreclosure proceedings or upon entry of judgment. A lender shall not obtain any agreement from the borrower: giving the lender or any third person power of attorney or authority to confess judgment for the borrower; authorizing the lender or any third party to bring suit against the borrower in a court outside the state; or waiving any right the borrower has under this chapter. A lender shall not require, or accept, more than one check from the borrower as security for any loan at any one time. A lender shall not: cause any person to be obligated to the lender in any capacity at any time in the principal amount of more than $500. A lender shall not refinance, renew, or extend any loan; cause a borrower to be obligated upon more than one loan at any time for the purpose of increasing charges payable by the borrower; require or accept a post-dated check as security for, or in payment of, a loan. A lender shall not threaten, or cause to be instigated, criminal proceedings against a borrower if a check given as security for a loan is dishonored; take an interest in any property other than a check payable to the lender as security for a loan; make a loan to a borrower to enable the borrower to pay for any other product or service sold at the lender’s business location.

Enforcement: The department can issue cease and desist orders and suspend/revoke licenses for violations.

Penalties: Criminal and civil penalties available.

Private right of action: Yes.