CONCORD - The House Republican Alliance issued a statement today on the passage of HB562, limiting interest on title loans. The Commerce committee had seriously studied this bill and concluded that more reporting information was needed. However, a floor amendment that returns the bill to limiting the interest rate to 25% the first month and 3% per month thereafter passed on the house floor.
“This bill with the floor amendment will put 40 people in the title loan business out of work. There have been almost no complaints against title loan companies in the past year,” stated Rep. Pam Tucker-Greenland. “This is an ideological solution looking for a problem that will not only cost our state jobs, but remove a legitimate avenue for people who need short term loans. This bill will drive folks who need this type of loan to unregulated, out of state internet lenders and to illegitimate loan sharks.”