Cash Pay Advance

Annual interest rates on the loans, which now can top 500 percent, would be capped at 36 percent under the proposed law. While payday loans are billed as short-term, small cash transactions that help tide people over to the next paycheck, critics say that the average borrower gets sucked into a cycle and takes out eight loans a year, according to industry statistics. Industry advocates also argued that short-term payday loans, which run for one week to one month, shouldn’t be measured in annual interest rates. Lenders dole out from $100 to $500 in a typical loan and charge a fee of $20 per $100, said Jamie Fulmer, a spokesman for payday lender Advance America, which has 21 stores in New Hampshire. Find Out More

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