Mike Kaelin's Record in the New Hampshire State House

Consumer Protection
Mission Accomplished!!

I was one of three representatives who sponsored bills to limit interest rates and protect
consumers from unfair lending practices. The Commerce Committee combined the three bills, and
finally HB267 passed this year on a party-line vote, setting the maximum interest rate for payday
and car title loans to 36%. Unscrupulous lenders will no longer be able to charge interest rates
between 500% and 1000% in New Hampshire!

In 1999, Senate Bill 99 passed on a voice vote. This lifted the 2% per month (about 27% yearly)
interest rate cap on small loans. This allowed the payday and title loan companies to move into
New Hampshire, and to charge interest rates as high as 1000% per year. There is no record of
Senator Roberge objecting to this bill.  Considering that her husband was banking
commissioner for 24 years and serving at that time, she should have known better.

When I ran for office in November 2006, I outlined the problem on my website.  That information is
repeated below.
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Consumer Protection (the problem in 2006)
Did you know that loan companies target New Hampshire residents with yearly interest rates up to
500% because there is no state law limiting interest rates?

These predatory practices harm the citizens who are least likely to be able to defend against it, our
Seniors on a fixed income and our young people who are struggling to improve their lives.

The laws in New Hampshire desperately need an update. Minimum standards won’t affect honest
businesses, and New Hampshire doesn’t need loan sharks. Most businesses are honest, but why
should we tolerate companies that take advantage of consumers?


From a website called: QuickClickLoans:

Notice how they target New Hampshire and a few other states that don't have interest rate limits.
Note the 100% interest rates:
Here's a couple of screen shots from a website called MyCashNow. I didn't see them
targeting specific states. The rates they show are illegal in most states, but not in New
Hampshire!
That's almost 500% interest! That's called usury, folks. Here's an interesting website that
compares the states: http://www.lectlaw.com/files/ban02.htm
Mike's Accomplishments in
the New Hampshire House