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New Hampshire's payday lenders will likely close shop next winter. The Senate yesterday approved a tight cap on payday and title loans, a measure that supporters and detractors agree would put the industry out of business.
Gov. John Lynch will sign the bill, which has already cleared the House, a spokesman said.
The bill's supporters say that payday lenders target vulnerable people and make it difficult for them to climb out of debt because the interest rates are so high that borrowers have to take out a second loan to pay off the first one. The measure would cap interest rates on the small loans - which now top 500 percent in annual terms - at 36 percent a year. At those rates, Advance America, which has 21 locations in New Hampshire, would lose $100,000 per storefront, spokesman Jamie Fulmer said.
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