Payday Advance Loan Store Closing Shop in New Hampshire

Advance America shutting down

Stores like this one won’t be around in New Hampshire anymore.

Borrowers in New Hampshire will have one fewer source for payday advance loans after Advance America closes all 24 locations in the state. Last year the New Hampshire legislature passed a law that capped interest rates on payday loans at 36 percent, and that has now led to the store closing down in the state.

Trying to stay afloat

Advance America tried to save its business by offering short-term revolving credit loans, but the state Banking Department banned them from doing that, too. The company says closing their stores will put about 50 people in New Hampshire out of work, and it will cost the company $1.2 million.

It just doesn’t add up

The interest rate cap means that if someone in New Hampshire took out a $100 payday advance loan, the company could only charge $1.38. That simply wasn’t enough to cover the cost of operating the stores, so Advance America decided to cut its losses. ... click here to read the rest of the article titled "Payday Advance Loan Store Closing Shop in New Hampshire"