Yipee!!
I can now go out and borrow tons of money if it is only at 36% interest!

Yeah, and no more bustin' knees deah Chalie.

Good riddance to old garbage!

"He would be too embarrassed to go to a welfare office, he said, and would rather "stand tall, make my deal with them and then make my payments because that keeps me a man."

If you define "man" as a "moron", then I can see his point.

ONLY 36% interest! Legalized loan sharking anyone!!!!

"We're from the government and we're here to protect you from yourself."

maybe the gov could offer payday loans to the ones that need it......at a decent intrest rate....who is this goofy politician that promotes these bloodsucking outfits??????????

"Live free or die" indeed.

How does this effect H&R Blocks tax loan and debit card usery business?

And stay out! Go live in Mass. with the mandatory unfunded health-care mandate and where the 500% interest rate will be right at home with the taxes.

i've actually had to use the service of cashland, payday services once, when i had to leave town for an emergency and needed about $200 more than what i had. it costed about $230 to pay back so i paid them about $30 for a $200 loan for 21 days. not sure what interest rates were or anything like that, i just made sure on the retail contract what the bottom line was (which is all i cared about). i was impressed. had not ever needed the service again, but if i did, i would return. i've paid friends $125 dollars back on a $100 loan for a week so, this was a good deal to me. now i'm in indiana and we do have laws in place to regulate what they can charge on interest and all that.

I don't see the problem with those lending places.

I'm against the government trying to stop people from doing stupid things for themselves.

If I want to eat fatty food and grow overweight - then that is my business.

If I want to smoke cigs and cause myself cancer - then that is my business.

If I want to drive a motorcycle without a helmet - then that is my business.

If I want to be in a car without a seatbelt - then that is my business.

If I want to pay 500% interest on a loan through some slimy PayDay loan place, then that is my business.

Of myself, I don't do any of those (other then eat fatty food.... [homer simpson voice]mmmmmm.... fatty food.....] - but I should have the right to do any of the above without the government coming in and trying to "save" myself from myself.

@coan_net: i think the problem is that if the government doesn't step in to protect consumers, everyone is forced to pay for your stupid choices.

our tax dollars have to pay for county health systems that will bring your fat, cancer-ridden ass back to life after your heart attack -- and then ironically our same tax dollars will be used again pay for law enforcement to scrape you off the pavement after you are ejected from your vehicle in a car accident on the way home from the hospital... finally, after you take out a shitty loan in order to fund your last minute trip to las vegas (for the smoking and drinking and cheap steak dinners, of course), and you lose big, our tax dollars have to pay for your general assistance and food stamps.

so the government stepping in to help protect consumers helps twice: it prevents you from being dumb and screwing yourself, and it protects us from having to support your dumbness for all eternity (or until you 'get back on your feet' and do something else dumb.)

I guess I'm playing devil's advocate, but if there's really no positive benefit to a 500% interest loan, then why is it okay to let stupid people do it? Wouldn't our economy be better off if we didn't let stupid people do a lot of things?

@coan_net:
Seconded! We don't need the government meddling in private business like this. There is clearly a need for these services in the community, see Snoop-Blog, and I imagine many people use them every day with similar experiences. Yes, there will always be a few people who can't handle it, continue to spend more than they make, and end up paying back WAY too much, but it's not the governments place to step in and stop it. When all the payday loan stores close down, who's going to loan the single working mother $500 when her car breaks down?

Good for NH. It's about time the scales were rebalanced between consumers and big business. Economic deregulation is what created the current economic mess.

Now that the high-interest-charging payday loan businesses are illegal, I think the leg-breaking loan businesses ought to be picking up in New Hampshire any day now.

"Live free or die" indeed, New Hampshire.

@Grrrrrrrrr: Gratuitous Mass-hate. The Taxachusetts tag is not only worn, it's wrong (and has been since 1982). But of course, the Granite-staters wont admit that what they forego in income tax and sales tax, gets drawn out of their rears in local taxes and fees.

But back on point, this is great for NH and I'd love to see many states follow suit!

@coan_net: who said you can't eat fatty food? who said you can't smoke? helmet laws i can half way agree with. seatbelt laws do suck, so i'll give ya 1 1/2.

@yesteryear: But where does it stop? We all make "suboptimal" choices on a daily basis - ones that will eventually cost society more than other choices. Ultimately your way of thinking will make us all beholden to a government standard of living that narrowly defines how we spend every moment of every day. Life is not purely about economic efficiency.

@MsClear: I thought it was consumers consuming beyond their means is what caused the current economic "crisis".

@yesteryear: Which is why the laws should be changed so that people who don't wear seat belts are allowed to refrain but then forfeit any health coverage by insurance companies (do the research on how much insurance companies lobbied for the seat belt laws).

@sleze69: I'd like to see the laws changed so that insurance companies would get more freedom to deny payouts to individuals who aren't responsible when driving - not wearing their seat belt, driving under the influence, etc., etc... It could help my rates go down. :)

@TheUncleBob: yeah but even without insurance, they can't be denied health care. it will still make health care rise.

@burgundyyears : in order for your line of reasoning to work we'd have to eliminate all social programs that assist those in need - how can we determine who genuinely has bad luck vs. who made the wrong choice?

@ SLEZE69: so you want to allow insurance companies to be even more tricky and underhanded when it comes to deciding which claims to pay? if we decided that your health/auto insurance premiums were only paid if you didn't make stupid choices where would that stop? couldn't the insurance company argue that you shouldn't have been standing so close to the curb when you were mowed down by the car? or maybe you were hit before you had a chance to put your seatbelt on? sorry, but giving the government the green light to give corporations more ways to cheat us out of our money is not my idea of a fair system. they already have the upper hand.

@snoop-blog: Which is why we need to fix health care. Just because they have to save your life, it doesn't mean they have to give you pain medication. ;)

@TheUncleBob: i don't think any of us on here has the right answer for the health care industry. assuming there even is a right answer. i'm not going to pretend i know how to cure health care, instead i'm going back to the original topic (sorry threadjackers) and say that payday loans interest rates should be capped. %500 and more? rediculous. that's taking advantage. obviously the person there getting the loan may be in a situation like i was (previous comment), and felt they had no choice. believe me, i tried to borrow from people i know before i went fot the loan. luckily indiana says the highest interest rate that can be charged is like %36.

You know, there's nothing wrong with taking advantage of stupid people. That's what they're there for. Consider that everything is relative. Why do have to automatically assume they're slime? It's not like anyone is forcing stupid people to take stupid loans.

If they're going to outlaw payday loans, are they also going to outlaw those rent-to-own places? Yesterday on Judge Judy a woman admitted to buying a PS3 for the low low price of 18 payments of only $123 each. I don't see how paying five times the value of a product is different than paying 500% interest. You can't make being stupid illegal.

@balthisar: i don't think anyone needs to assume they slime. %500 and up? if that is not slime, you may be on the wrong website.

Carey, can i get an amen?

@blondegrlz: no, but you CAN make taking advantage of stupid people illegal. thats why being a con-artist is illegal. these payday lenders are basically loan sharks/con-artists with a business license - a license that requires them to abide by fair business practices. consider your line of reasoning: if the payday lenders can do it - then whats to stop your bank from hiking your interest rate to 500%?

"sorry, but giving the government the green light to give corporations more ways to cheat us out of our money is not my idea of a fair system. they already have the upper hand."

TRUE and today in particular IRONIC as we sit here and complain about little scumbags like usurers, the government is trying to scare the crap out of you just for the purpose of Retroactively protecting Huge Scumbags like the telcos from having to take responsibility for their RICO activities with the Government.....

I love the generic clip art that the place in the pic uses, especially the slightly creepy man with an ambiguous expression on his face.

@TheUncleBob:
Actually, I would think that health insurance premiums would take into consideration activities that increase morbidity, like smoking, not wearing seatbelts, etc.

So where are people who depended on these services going to get money now? The black market seems the only option for most of them.

Sorry, but we cannot save people from themselves.

@TheUncleBob: Which is exactly what is happening with these payday loans. You don't have $100? Well borrow it from us, and then you can pay us back $120 that you don't have!

@yesteryear: "our tax dollars" are primarily used to help those with money keep the money. You are deluding yourself if you think that such social programs you speak of are even a blip on the radar of most politicians.

Prosecuting otherwise innocent individuals for doing or offering 'stupid' things - another service governments offer.
I think that voting for morons is stupid as well, why isn't that illegal? Then we wouldn't have to spend "our tax dollars" invading or occupying other countries.

@doctor_cos: the reason moron's can vote is because of something called the electoral college. they don't have to vote for mr nader simply because of the majority of the population did.

@nequam: Yeah, I know. Sorry, it's just built into our genes. Besides, like half the other people in the Granite State, I'm a MA transplant from way back. I looked at the statistics, and we Granite Staters still have a lower tax burden than MA, but we get royally shafted with property taxes and we get no services in return for lower taxes. And even though the taxes are low, nobody mentions that the wages are low too. :>

AMEN@coan_net:

what about the Rent To Own businesses? Seems to me they do the same thing. Can never forget a friend of mine ordering a computer from Finger Hut cuz the monthly payments were so low, however by the time it was paid off the total cost was about 3 times the real amount of the computer. I don't think the government should have stepped in to say "hey stupid, why don't you just save for a computer" she was fully capable of reading the contract and she was ok with the price..As long as the customer is made aware of exactly how much they would be paying, I don't see a problem. The first time I bought a house and saw the page that listed how much I would pay after 30 years, I almost fainted, but I've bought 2 houses since then. Make sure the customer is aware of the charges, and I don't see a problem at all, charge whatever interest you want.

I would also think the lottery should be considered in this. How many lower income people play the lottery. Ever been behind someone that is obviously low income and they are buying $50 worth of scratch off tickets? I saw one guy in a convenience store scratching off his tickets while his 3 very small children we sitting in the car by themselves. I guess shelling out $50 for a hopefully $10 payout is worth it....

If I overdraft my checking account by one cent, they charge $32 + $6/day. What's the APR on that one cent loan?

How about instead, we expect people to take personal responsibility for their finances and expect the government to take care of the problems it is supposed to (border security anyone?)

@Grrrrrrrrr: Cheers! I was surprised to see how high the tax burden is in VT. What the hell are they doing up there??

suck that someone comes up with a product or service the market demands, and the state gives them the boot.

Everyone who pays taxes is enrolled in government welfare. its called income re-distribution. I agree that I don't want the government to save me from myself. I am sending my rebate check right back when I get it. I don't need a hand out!
If I want to make a commercial with kids exercising and having fun to trick kids into buying my product, I have that right. I should have the right to not wear my seat belt and having everyone participating in the health industry carry the burden for my medical bills when I get messed up. I need that right! I will continue paying my 500% whether they like it or not.

@nequam:

In Vermont, they are busy making cheese and ice cream.

They should force the Payday lenders to just lend them the money for no interest, right Consumerist?