NC Payday Lending Overview
Payday Loans ScrutinizedArmen Keteyian reports on the dangers of payday loans. Aired on CBS Evening News July 29, 2008.
North Carolina is the first state in the country to close down a once legal payday lending industry.
This saves hundreds of millions of dollars every year for North Carolina families living paycheck to paycheck. However, the fight is never over. The industry constantly looks for new ways to bring payday-like lending to North Carolina.
Act Fast to Keep Predatory Lenders out of North Carolina
Senator Rick Gunn (R, Alamance, Randolph) introduced a bill, Senate Bill 681, to double and in some cases triple the interest rates on consumer installment loans. Current law caps the annual percentage rate on these loans at around 40% APR (30% interest and a small origination fee). This bill allows APRs as high as 80% to 125%, which will trap families in debt.
With the crossover deadline rapidly approaching, we expect quick action to move the bill. Please help stop this bill by acting today.
Ellen Harnick, senior policy counsel at the Center for Responsible Lending, wrote a column for the Herald-Sun on debt-trap lending in North Carolina. Read the entire article and continue to speak out on Twitter with #StoptheDebtTrap.