HB 810, CONSUMER FINANCE ACT AMENDMENTS
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On June 2nd, the House passed HB 810, a bill that significantly increases the cost of small loans in NC, by a narrow vote of 60 to 55. However, the bill received a cooler reception in the Senate, where it was referred to the Senate Rules Committee. The bill is eligible for consideration in the 2102 short session.
CRL conservatively estimates that this bill would cost NC consumers $50 to $70 million in extra interest every year, plus tens of millions of dollars in additional fees. Since CitiFinancial and American General control two-thirds of the loan volume in NC, the bulk of these windfall profits will flow to these two lenders and the companies that own them -- CitiGroup, AIG and a New York hedge fund.
HB 810 passed with a few window dressing amendments despite strong opposition from:
- NC and national military leaders -- commanders at every military base in the state and the Department of Defense;
- The NC Attorney General, who spoke repeatedly against the bill;
- The Governor, who released a press statement opposing HB 810; and
- AARP NC, NC NAACP, the NC Justice Center, and Credit Counseling Agencies of NC.
In addition, the NC Commissioner of Banks, after careful study of the industry at the request of the General Assembly, recommended no increase in rates and fees.
How Did Your Representative Vote on HB 810 PCS?
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MORE ABOUT HB 810
Published: May 25, 2011
Categories: Financial Literacy
