Bank tries alternative to payday loans

Wednesday, April 23, 2008

A New Hampshire bank is launching a low-interest, short-term loan as an alternative to costly payday loans. St. Mary's Bank customers can now take out MyPay loans with a fixed 18 percent annual percentage rate.

The new loans charge half the 36 percent interest cap that lawmakers want to impose on payday lenders. The cap was approved by the state Senate in February. It needs to pass the House before it can be signed into law. Payday lenders say it would end their businesses.

Source: http://www.concordmonitor.com/