Policy & Legislation

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Payday lending was permitted by legislation enacted in 1997; however the legislation expired in 2001 through a “sunset provision.”

  • Demise of Payday Lending in North Carolina
    On March 1, 2006, Attorney General Roy Cooper announced that the last three major out-of-state payday lenders had agreed to stop making illegal loans in North Carolina. As a result, working families in the state will save almost $100 million each year -- money they can use to buy food, pay their bills, and balance their family budget.
  • The Center for Responsible Lending on The Demise of Payday Lending In NC
    Yesterday, Attorney General Roy Cooper announced that the last three major out-of-state payday lenders had agreed to stop making illegal loans in North Carolina. As a result, working families in the state will save almost $100 million each year -- money they can use to buy food, pay their bills, and balance their family budget. Payday lenders make small loans and charge interest rates of as much as 400 percent, trapping families in a cycle of debt from which many never recover. The Center for Responsible Lending applauds the Attorney General's work on behalf of the state's consumers and says this milestone should be an example for other states where the payday lenders still do business. These states should be aware it did not happen overnight. It took five long years. First, the North Carolina legislature had to admit that the payday lending experiment had failed -- that borrowers were being trapped into a cycle of debt that should have been prohibited by NC law. Legislators resisted incredible lobbying pressure to allow the industry to remain in the state.
  • Press Release from the NC Attorney General Regarding the Demise of Payday Lending in NC
    Three more payday lenders have signed agreements to stop making illegal loans in North Carolina, Attorney General Roy Cooper announced today. The agreements mean that payday lending by all major companies in North Carolina has come to a halt. “We’ve fought payday lending at every turn and now we’re putting this industry out of business here in North Carolina,” said Cooper. “These payday lenders thought they’d found a way around North Carolina law. Now we’re showing them the way out of our state.”