We recently received some good news from our friends at the Center for Responsible Lending that a New Hampshire court has ruled that loans which charge 365% interest rates are illegal under state law. Hopefully, Tennessee will soon follow suit.
Right now consumers in Tennessee are faced with paying well over 200% interest rates for loans from pay day and car title lenders, but TNCA is working with the Tennessee Coalition for Responsible Lending to pass legislation which would cap such loans at reasonable rates.
The importance of stamping out these usurious loans is hard to overstate. Even though the short term loan industry claims people need these loans, a recent study found that people approved for these loans go into bankruptcy far more often then those rejected.
Sunday, February 1, 2009
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