For consumers that need an adverse credit loan quickly, historically this meant going to a payday lender and biting the bullet when it came time to pay the interest rates on the loan. However, many have accused companies that offer adverse credit secured loans of being glorified loan sharks and numerous states are starting to institute rate caps to keep interest rates on these adverse credit secured loans from skyrocketing.In many cases, consumers may end up paying more than 400% interest on an adverse credit secured loan, and lawmakers are trying to put a stop to this. The latest state to join the effort is New Hampshire, where lawmakers are trying to institute a new rate cap that will limit the amount of interest that can be charged on adverse credit secured loan to 36%. Although this will help consumers, proponents of the payday loan industry feel that it will put these lenders out of business. Lobbyists have been fighting rate caps on adverse credit secured loans tooth and nail but with the country’s eyes on the housing and economic crises, their pleas are falling on deaf ears. Numerous other states are expected to join in instituting rate caps.
Related reading: Adverse Credit Secured Loan
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