Payday Loan Times

The following are excerpts from some of the complaints to the New Hampshire Banking Department from short-term borrowers.

Most of the complaints were not from online payday loan borrowers – which encompass the bulk of the short-term loan industry – but from title loan borrowers. While payday borrowers write a check as collateral, title loan borrowers sign over the title to their car.

Sarah Mattson, an attorney with New Hampshire Legal Assistance, and a critic of the payday advance and title loan industry, said she too gets a much more disproportionate number of complaints from title lenders.

“That doesn’t surprise me,” she said. “In a payday loan they stand to lose money, but under a title loan, they could lose their most important asset. In New Hampshire, you need a car to work or find work. That might motivate them to seek legal help or complain to the Banking Department.”

Among the complaints:

• “I was heavily medicated awaiting surgery … I have already made two payments of $750, which has only covered interest.”

• “(The no fax cash loan lender) contacted my girlfriend and told her she should make payments for me, a single mom with two children on a very small income, pressuring her to pay my loan payments very stressful for her … began contacting friends … also informed them … that they would repossess my car and possible have charges brought against me. I did not give permission at any time to call my friends.”

• “When I contacted the agent the next day after repossession was told car already went to auction and I did not have access to it. They placed my personal items in a trash bag, delivered it and charged a $25 “key” fee before I could get my items.”

• “My 22-year-old son was drawn into their trap. The interest rate is 30.58 percent, which is annual rate of 372 percent. I think this representative is loan sharking … and will look to get some my son’s blood money back.”

• “We went in for a [cash advance payday loan] of $2000 on my truck…. We were screwed and didn’t know what to do. …. Here we are four payments [of $678] later and we still owe $2113.”

• “I was led to believe that the interest on the loan was 31 percent and it was per month, but that’s 372 percent per year …. I wasn’t explained this clearly enough … this is unfair, hook line and sinker tactics or should I say worse than LOAN SHARKING. In three months I paid over $1600 in interest on $1500.”

• “I went to the office and paid off the loan in cash … they told me they did not know where my title was.”

• “No one returns my calls. Vehicle is to be auctioned off. I’m disabled living out of said vehicle, homeless, vehicle worth more than loan.”