Payday Loans and Cash Advance in New Hampshire

Capped at 36% APR since 2009. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in New Hampshire.

Is a Cash Advance Legal in New Hampshire?

Payday loans are legal in New Hampshire on paper, but the price is capped so low that almost none are made. RSA 399-A, the chapter that regulates small loans, title loans and payday loans, says in section 399-A:17 that the annual percentage rate on a payday loan shall not exceed 36 percent, that the loan may carry interest only, and that no other charge or fee may be collected. That cap took effect on January 1, 2009, when a 2008 law amended the chapter; the payday provisions were renumbered in 2015 and the rate has not changed. A payday loan is limited to $500 in principal, must mature in 7 to 30 days, may not be renewed, refinanced or extended, and cannot be made to anyone who has had a payday or title loan outstanding in the previous 60 days. On $300 for two weeks the most a lender can charge is $4.14. The lender must be licensed by the New Hampshire Banking Department, must keep an office in the state, cannot threaten criminal charges over a bounced check, and must let you cancel by the next business day. Online lenders that solicit New Hampshire residents are covered by the same license requirement and the same 36 percent ceiling.

The governing law is New Hampshire RSA Chapter 399-A, Regulation of Small Loans, Title Loans, and Payday Loans (RSA 399-A:2 (license required); RSA 399-A:17 (payday loan lenders)).

Loan Limits and Terms in New Hampshire

New Hampshire did not ban payday loans by name. It left the product in the statute and priced it at 36 percent, the same ceiling RSA 399-A:12 applies to every closed-end small loan of $10,000 or less. The result is a legal product that few lenders offer, because $4.14 on a $300 two-week loan does not cover the cost of making it. The rules around the cap are strict: interest only, so no application, origination or database fee; one check as security, never post-dated; no renewal of any kind; and after maturity interest may not accrue above 6 percent a year. A borrower may make partial payments of $50 or more at any time without charge and must get a signed, dated receipt for each. The 60-day rule covers title loans too, so paying off one does not open the door to the other.

What a $300 Loan Costs in New Hampshire

RSA 399-A:17 allows interest only, at an annual percentage rate no higher than 36 percent, so the fee is the interest on $300 for 14 days: 300 x 0.36 x 14 / 365 = $4.14. The borrower repays $304.14. Checking the APR: 4.14 / 300 x 365 / 14 = 0.36, or 36 percent. Over the 30-day maximum term the same loan would cost $8.88. Any application fee, database fee or renewal charge on a New Hampshire payday loan is illegal, so the interest is the whole price.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in New Hampshire

• No person may act as a small loan lender in New Hampshire, or with consumers located in New Hampshire, without a license from the Banking Commissioner, and the chapter reaches anyone who tries to evade it by renaming the loan or working through agents, affiliates or exempt partners (RSA 399-A:2).
• The annual percentage rate on a payday loan may not exceed 36 percent, the loan may carry interest only, and no other charge or fee may be collected (RSA 399-A:17, I and II).
• You may cancel a payday loan before the close of business on the next business day by repaying the amount advanced in cash or another funds instrument, and the loan agreement must say so (RSA 399-A:17, III(f)).
• A lender may not threaten or instigate criminal proceedings if the check given as security is dishonored, may not take a post-dated check, and may not hold more than one check from you at a time (RSA 399-A:17, V, IX and X).
• The lender may not make you sign a confession of judgment, agree to be sued outside New Hampshire, or waive any right under the chapter, and the check it holds must be stamped so any later holder takes it subject to your defenses (RSA 399-A:17, IV and XV).
• Before the loan is made the lender must give you a plain-language pamphlet on your rights with the Banking Department's toll-free complaint number, plus a printed notice that a payday loan is for short-term needs only (RSA 399-A:17, XVI and XVII).
• You may prepay in full or in part before maturity, and partial payments of $50 or more must be accepted without charge and acknowledged with a signed, dated receipt (RSA 399-A:17, III(g) and XVIII).

Complaints and licence checks go to the New Hampshire Banking Department, Consumer Credit Division: 603-271-3561, www.banking.nh.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in New Hampshire

RSA 399-A:2 requires a license for anyone in the business of small loans in this state or with consumers located in this state, which is the phrase that pulls in websites. An online lender that takes applications from New Hampshire residents needs the Banking Department license and is bound by the 36 percent ceiling, the $500 limit and the 60-day rule. Section 399-A:2 also targets the usual workarounds by name: calling the loan something else, routing it through an agent or affiliate, or partnering with an exempt entity such as an out-of-state bank while keeping the predominant economic interest in the loan. Section 399-A:17 adds that every payday loan lender must maintain an office in New Hampshire that is accessible to consumers, which a purely remote operation cannot meet. In practice the licensed market is small, and most payday-style offers that reach New Hampshire residents come from unlicensed out-of-state or tribal-affiliated websites charging their own rates. Those loans sit outside the chapter, so check the Department's licensee list at 603-271-3561 before applying.

Alternatives If a Payday Loan Is Not the Right Fit

The same 36 percent ceiling applies under RSA 399-A:12 to any closed-end loan of $10,000 or less from a licensed small loan lender, so a licensed installment loan repaid over several months is the closest legal substitute and spreads a small amount over a longer term at the same rate. New Hampshire banks and credit unions, which do not need the small loan license, offer personal loans and overdraft lines, and federal credit unions can offer Payday Alternative Loans under National Credit Union Administration rules. A credit card cash advance is more expensive than 36 percent but far below a typical out-of-state payday fee. For a single bill, asking the utility, landlord or medical office for a written payment plan usually costs nothing, and New Hampshire's 2-1-1 line connects residents to fuel assistance, rent help and food programs. If you took an online loan above 36 percent from an unlicensed lender, keep the agreement and bank records and contact the Banking Department before paying more.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• VermontThe fee cap, a worked example and the regulator to call in Vermont.
• MaineThe fee cap, a worked example and the regulator to call in Maine.
• MassachusettsThe fee cap, a worked example and the regulator to call in Massachusetts.