New Hampshire Payday Loan Laws and Regulations
Find out if short-term Payday Loans are legal in New Hampshire and what amounts, interest rates and repayment terms are set by the state's Legislation.
Legal Payday Loans Online for New Hampshire residentsApply online
New Hampshire Payday Loans Rates and Terms
| Legal Status ▲ Legal Status The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates. | Illegal |
| Maximum Loan Amount ▲ Maximum Loan Amount It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements. | $500 |
| Maximum Loan Term ▲ Maximum Loan Term It’s the maximum period of time within which you are to allowed to pay off your loan. | 30 day(s) |
| Minimum Loan Term ▲ Minimum Loan Term It’s the minimum period of time within which you are allowed to pay off your loan. | 7 day(s) |
| Maximum APR ▲ Maximum APR The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan. | 36.00% |
| Finance Charges ▲ Finance Charges All the payments you’re going to be charged for the loan including APR and other fees. | $1.38 for $100 FOR 14 days |
Though you must have heard that traditional Payday Loans are restricted in New Hampshire, you may find other options to get instant cash advance permitted by New Hampshire laws. Study the state's rules and regulations concerning short-term loans in New Hampshire. Find available alternatives.
Table of Contents:
Are Payday Loans legal in New Hampshire?
Why are Payday Loans strongly regulated in New Hampshire?
New Hampshire Payday Loans Laws
New Hampshire Payday Loans online laws
Does New Hampshire law allow Payday Loans for bad credit borrowers?
New Hampshire Payday Loans news - latest changes
Are Payday Loans legal in New Hampshire?
Short-term Payday Loans in New Hampshire are available but with certain restrictions imposed by N.H. Rev. Stat. Ann. 399-A:1 et seq..
The Payday Lending legislation covers all the parts of the process concerning:
- Payday Loan amounts
- Payday Loan repayment terms
- Payday Loan online direct lenders
- Payday Loan stores near you
- Payday Loan interest rates and other fees
- Payday Loan collecting practices
- Payday Loan default penalties
- The number of outstanding Payday Loans as well as a cooling-off period in-between etc.
Read more: Payday Loans in New Hampshire
The main Payday Loan eligibility criteria which the residents of N.H. Rev. Stat. Ann. 399-A:1 et seq. must meet are:
- US residence
- Minimum regular income of $1,000 per month
- Valid checking or savings account with direct deposit
- Phone number and e-mail address
N.H. Rev. Stat. Ann. 399-A:1 et seq. caps all short-term loans under 36.00% APR.
For other details and information on Payday Loans in New Hampshire contact New Hampshire State Banking Department, 53 Regional Drive, Suite 200 Concord NH 03301, (603) 271-3561.
Why are Payday Loans strongly regulated in New Hampshire?
The Government considers Payday Loans too expensive and often associated with lenders' predatory practices.
For example, a worker writes a check to the so-called lender for $115 on the 7th of the month, dating the check for the 21st when he or she gets paid. The worker is given $100 in cash from the so-called lender. On the 21st of the month, the lender cashes or deposits the worker's check for $115. The worker has paid $15 in interest charges for a 14-day loan on $100 at an Annual Percentage Rate (APR) of 391%!
That's why in New Hampshire Payday Loans are capped by 36.00% APR. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.
New Hampshire Payday Loan laws
New Hampshire residents who would like to apply for a Payday Loan online as well as in-store must meet the following eligibility criteria:
- US residence
- Minimum regular income of $1,000 per month
- Valid checking or savings account with direct deposit
- Phone number and e-mail address
If you qualify, you can get up to $500 and the repayment terms will vary from 7 day(s) to 30 day(s).
New Hampshire residents are not allowed to roll over the loan and to have more than 1 cash advance at a time. Besides, there's a 60 days cooling-off period.
However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for an online Payday Loan in New Hampshire.
If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in New Hampshire: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.
New Hampshire Payday Loans online laws
Cash advances (payday loans) from both storefront and online lenders are restricted by 36.00% APR usuary cap by N.H. Rev. Stat. Ann. 399-A:1 et seq.. It also concerns online lenders which must operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to New Hampshire State Banking Department, 53 Regional Drive, Suite 200 Concord NH 03301, (603) 271-3561, https://www.nh.gov/banking/ for law violations.
The law obligates New Hampshire Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract. It's also required that a lender was licensed as a small loan lender by the Banking Department.
Does New Hampshire law allow Payday Loans for bad credit borrowers?
The average credit score in New Hampshire is 701, placing it in the fair range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in New Hampshire.
- First of all, there're some companies in New Hampshire providing similar to Payday loan services to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
New Hampshire Payday Loans news - latest changes
The New Hampshire Banking Department attempted to unveil the schemes of unlicensed payday lenders which tried to issue Payday Loans through Western Sky Financial, LLC or exploiting Indian Tribal Sovereign Immunity to shield its deceptive business practices from prosecution by state and federal regulators.
These lenders are to refund the money to the customers and to pay an administrative fine of $188,800. They are prohibited to take any collection actions against borrowers.
If you have any questions or concerns regarding this matter, you can contact New Hampshire State Banking Department, 53 Regional Drive, Suite 200 Concord NH 03301, (603) 271-3561.
New Hampshire Payday Loans historical background
| Since April 13, 2003 | Payday Loans have been regulated by the New Hampshire Banking Department |
| 2006 | Payday Loans to the military were capped at 36% APR. |
| January 1, 2009 | Payday Loans APR over 36% was prohibited which made many lenders close their activity in the state. |
| June 2, 2016 | A Payday Loan Rule was proposed but still under consideration. |
New Hampshire Payday Loan alternatives
If you're looking for instant cash advance in New Hampshire but not a Payday Loan, consider other alternative ways to get the necessary funds:
- Apply for a New Hampshire Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
- Take out a Car Title Loan if you own a vehicle to use as collateral.
- Sell some of your valuable stuff online or at a pawn-shop.
- Apply for New Hampshire Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations.
- Consider borrowing from a bank or credit union. U.S. Bank, the fifth-largest bank nationally, is lending up to $1,000 to cash-strapped consumers through its Simple Loan program.
- Qualify for one of Federal or New Hampshire government assistance programs: Low Income Energy Assistance Program (LIEAP), New Hampshire Health Care Cost Containment System (AHCCCS), Supplemental Nutrition Assistance Program (SNAP), The Emergency Food Assistance Program (TEFAP), Commodity Senior Food Program (CSFP), Congregate and Home Delivered Meals, Cash Assistance, Child Care Assistance.
