New Hampshire has now joined the long list of states attempting to institute rate caps on fast loan companies. Consumers have complained of sky high interest rates and lawmakers are reacting by cracking down on fast loan companies that overcharge. However, for those in the fast loan industry, these new rate caps may mean going out of business. ”It will eliminate a sensible financial choice, thousands who take out a state regulated payday loan each year will be left without a viable alternative and hundreds of employees will be put out of work,” said the one of the company’s director of public affairs, Jamie Fulmer.However, lawmakers are concerned about fast loan companies that charge upwards of 400% interest on loans. Although there is a need for fast loans, experts are encouraging consumers to visit their local credit union before going to a fast loan company. They can usually get an approval and the rates will be much lower. Numerous states across the US and several Canadian provinces have started rate capping, and as a result, many fast loan companies have gone out of business in response. This may spell trouble for consumers that need a fast loan and can’t get approval anywhere else.
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