Ratte Law Office » Financing

NH Limits Interest Rates for Title Loan and Payday Loan Companies

admin — Fri, 11 Dec 2009 15:58:29 +0000

Payday Loan companies are now prohibited from charging excessive interest rates to consumers.

Legislation, which went into effect on Jan. 1, 2009, will most likely put the payday loan industry out of business in New Hampshire. HB-267 limits the annual percentage rate on a payday and title loans to no more than 36 percent per year.

Payday loans are short term loans (usually a week or two) of $300 to $500, secured with a pay stub and paid back with a flat fee that translates to an annual interest rate in the hundreds. Title loans require the borrower’s car as collateral.

Lawmakers found that the rates of interest charged by many title loan lenders and payday lenders are unreasonable and predatory. Some Title loan lenders charge rates of up to 350%, and payday lenders were charging up to 1,000%.

Supporters said 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 Act also prohibits lenders from giving payday or title loans to any borrower who has had such a loan in the previous 60 days.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

Need Venture Capital? Try Speed Dating.

admin — Thu, 13 Aug 2009 16:02:33 +0000

On Tuesday, October 28th, the NH High Technology Council and the NH Small Business Development Center will host the second annual “Speed Venture Summit” in Nashua, NH.

The Speed Venture Summit is a speed-dating-style event for fast-growth businesses and investors in New England. It is an opportunity for small businesses and entrepreneurs to showcase their business plans with speed pitches to numerous investors, all in one afternoon.

Approximately 50 companies will be selected to make pitches to some 25 different investment groups. Investors will include angels, venture capital firms and other private equity investors.

For more information about the Speed Venture Summit, visit www.speedventuresummit.org.

For a free half hour consultation about business planning and investment, please contact Attorney Chris Ratté.

BAILOUTS FOR THE REST OF US: What Washington is doing to help small businesses weather the economic storm.

admin — Wed, 18 Mar 2009 20:30:22 +0000

Everyday we hear about the latest government bailout to Wall Street and the big banks and insurance companies; billions of dollars going to the very same people who helped to create this economic crisis. While at the same time, small business owners and entrepreneurs who had nothing to do with it are suffering with no hope in sight.

Despite the way things seem, however, you have not been abandoned by your government. Although it has not garnered the same headlines as the massive Wall Street bailouts, the Obama Administration has earmarked billions of dollars to specifically help small business owners. Most of the money will be for the U.S. Small Business Administration to increase credit and financing available to small businesses. Here are some of the programs being offered by the SBA under the economic stimulus plan:

Temporarily eliminating fees – ranging between 2% and 3.7% – on SBA-backed loans
Raising SBA’s guarantee percentage on some loans from 75% to 90%
Creating new loan programs to help small businesses meet existing debt payments
Expanding SBA’s Microloan program for loans under $35,000

Additionally, according to Forbes.com, $15 Billion will be used to purchase securities backed by the SBA-guaranteed loans in an attempt to jump-start the secondary credit market for small businesses. Banks that offer SBA-guaranteed loans have hit a lending wall in recent months, as the secondary market is frozen, so banks can’t get the old loans off their balance sheets to free up capital for new loans. The buyout of the old loans will free up more credit to be available to small business owners who need the money now.

For a free half hour consultation to learn more about financing for small businesses, contact Attorney Chris Ratté.