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SC-based payday lender closing in NH |
South Carolina-based payday lender Advance America is closing up shop in New Hampshire because of the new state law capping interest rates.The Spartanburg, S.C.-based company said it will close all 24 of its New Hampshire offices, costing 50 people their jobs.Early last month, Advance America tried to offer short-term revolving credit loans after a new law limiting payday loan interest went into effect. However, the state Banking Department blocked the move, calling the triple-digit interest rate oppressive.The new law capped interest rates on payday loans at an annualized 36 percent. Payday lenders said the cap would let lenders charge $1.38 per $100 borrowed every two weeks. They said it was not enough to cover their costs.
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