2015 New Hampshire Revised Statutes
Title XXXVI - PAWNBROKERS AND MONEYLENDERS
Chapter 399-A - REGULATION OF SMALL LOANS, TITLE LOANS, AND PAYDAY LOANS
Section 399-A:12 - Provisions Applicable to Loans.

[RSA 399-A:12 effective until January 1, 2016; see also RSA 399-A:12 set out below.]     399-A:12 Provisions Applicable to Loans. –
    I. For any closed-end loan in the amount of $10,000 or less, a lender may lend in money, goods, or things of value upon such security not forbidden by RSA 399-A:11, VIII as may be agreed upon, and in connection with any such loan, may contract for, exact, or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense, or otherwise, on the entire principal of the loan, for which the annual percentage rate (APR) shall not exceed 36 percent. The APR shall be calculated in accordance with Federal Reserve Board Regulation Z. Notwithstanding the federal definition of APR, for purposes of calculating APR, the finance charge shall exclude one application fee per borrower per year and one participation or membership fee per borrower per year.
    II. For any open-end loan with a line of credit of $10,000 or less, a lender may lend in money, goods, or things of value upon such security not forbidden by RSA 399-A:11, VIII as may be agreed upon, and in connection with any such loan, may contract for, exact, or receive, directly or indirectly, charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense, or otherwise, on the entire principal of the loan, for which the APR shall not exceed 36 percent. The APR shall be calculated in accordance with Federal Reserve Board Regulation Z. Notwithstanding the federal definition of APR, for purposes of calculating APR, the finance charge shall exclude one application fee per borrower per year and one participation or membership fee per borrower per year.
    III. No small loan lender shall permit any person to be obligated to him or her on one or more contracts of loan the total principal balance of which is more than $10,000.
    IV. For the purpose of applying paragraphs II and III of this section only, small loan lender shall mean any single small loan lender, except that in the event any person or affiliated group of persons holds more than one small loan lender license, such person or affiliated group of persons shall be considered a single small loan lender.
    V. No small loan lender shall induce any potential borrower who is not a loan customer of the lender to enter into a closed-end loan agreement, by delivering in the first instance a negotiable check for such loan to such potential borrower, without including the following information clearly printed on the endorsement side of the check:
       (a) A statement which reads, "By endorsing this check, you become legally liable for repaying all moneys, including interest, as specified in the following loan agreement/disclosure statement'';
       (b) The amount financed;
       (c) The annual percentage rate;
       (d) The number of installments; and
       (e) The amount of each installment payment.
    VI. Every small loan lender shall:
       (a) Mail or deliver to the borrower, or if more than one, to one of them, at the time of making a loan under this chapter, a payment book in which space shall be provided for the record of all payments showing principal, interest, and balance and which shall contain statements showing the date of such loan; the amount of the principal of such loan; the total interest charged for the period of such loan; the nature of the security, if any, for such loan; the name and address of the borrower and of the lender; and the description of schedule of payments on such loans. The payment book shall also have printed therein an interest calculation such as the following:
    "Interpretation of Interest Charges in the Event Payments are Made when Due.

    2% per month = 24% per year or $13.47 per year on $100

    1 1/2% per month = 18% per year or $10.01 per year on $100''

Provided, however, a lender may provide a borrower with a monthly billing statement in lieu of a payment book and the information required above.
       (b) Give to the person making any cash payment on account of any closed-end loan a receipt at the time such payment is made.
       (c) Permit payment in advance in an amount equal to one or more full installments at any time during the regular business hours of the lender.
       (d) Upon repayment of a closed-end loan in full, mark plainly every note or other evidence of the indebtedness or assignment signed by an obligor or a copy of any of the foregoing documents with the words "PAID IN FULL'' or "CANCELLED'' and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the lender. If the original is retained by the lender, the original shall be returned within a reasonable period of time upon the written request of the borrower.
       (e) Upon repayment of an open-end loan in full, written notice from the borrower to the lender of termination of such loan, and surrender to the lender of any checks or other device used to obtain credit: mark plainly every note, agreement, or assignment signed by an obligor, with the words "PAID IN FULL'' or "CANCELLED'' and release or provide the borrower evidence to release any mortgage or security instrument no longer securing any indebtedness to the lender.
    VII. No lender shall conduct the business of making loans under this chapter at any office, suite, room, or place of business where liquor or lottery tickets are sold.
    VIII. The commissioner shall have exclusive authority and jurisdiction to investigate charges, whether for interest, compensation, brokerage, endorsement fees, consideration, expense, or otherwise, and fees, whether for application, participation, insurance, debt cancellation, late payment, or otherwise, on small loans, payday loans, and title loans that are or may be unreasonable or an unfair or deceptive act or practice under RSA 358-A and exempt under RSA 358-A:3, I, or a violation of rules adopted by the commissioner. The commissioner may hold hearings relative to such conduct and may order restitution for any person adversely affected by such conduct.
    399-A:12 Consumer Inquiries. --
    I. Consumer complaints naming licensees under this chapter, which are filed in writing with the office of the commissioner, shall be forwarded via certified or registered mail to the licensee for response within 10 days of receipt by the department. Licensees shall, within 30 days after receipt of such complaint, send a written acknowledgment thereof to the consumer and the banking department. Not later than 60 days following receipt of such complaint, the licensee shall conduct an investigation of the complaint and either:
       (a) Make appropriate corrections in the account of the consumer and transmit to the consumer and the banking department written notification of such corrections, including documentary evidence thereof; or
       (b) Transmit a written explanation or clarification to the consumer and the banking department which sets forth, to the extent applicable, the reasons why the licensee believes its actions are correct, including copies of documentary evidence thereof.
    II. A licensee who fails to respond to consumer complaints as required by this section within the time prescribed shall pay to the commissioner a penalty of $50 for each day such response is overdue. For purposes of this section, the date of transmission shall be the date such response is received by the commissioner.
    III. (a) Licensees which, because of extenuating circumstances beyond the control of the licensee, are unable to comply with the time frames prescribed in this section, may make written request to the commissioner for a waiver of such time frames. Waivers shall not be granted or considered unless the request for the waiver:
          (1) Is received by the banking department within 50 calendar days following the licensee's receipt of the complaint;
          (2) Specifies the reason for the request; and
          (3) Specifies a date certain by which the licensee shall comply with the provisions of this section.
       (b) Requests for waivers shall be either granted or denied within 5 calendar days of receipt by the banking department.

Source. 2015, 73:1, eff. Jan. 1, 2016.