In New Hampshire, payday lending is legal and regulated by the state's Banking Department. The state has set limits on the fees and interest rates that payday lenders can charge, as well as maximum loan amounts. The maximum loan amount is $500 with a minimum loan term of 14 days and a maximum loan term of 30 days. The fees and interest rates on these loans are also capped, with a maximum annual percentage rate (APR) of 36%. This means that for a $100 loan, a lender can charge a maximum of $3 in fees and interest.
The state's regulations also require payday lenders to provide certain disclosures to borrowers, including the total cost of the loan, the APR, and the terms of repayment. Additionally, lenders are required to provide borrowers with a written contract that outlines all of the terms and conditions of the loan, including any fees or charges that may be incurred if the borrower is unable to repay the loan on time.
The New Hampshire Banking Department is responsible for enforcing the state's payday lending laws and ensuring that lenders are complying with all applicable regulations. This includes investigating complaints from consumers, conducting examinations of lenders, and taking enforcement action against those who violate the law. The Department also provides education and resources to consumers to help them make informed decisions about payday lending. Additionally, borrowers can also file a complaint with the department if they find any violation of the rules by lender.