NC opens inquiry into leading 'buy now, pay later' lenders as late payments rise

Source
Brian Gordon | The News & Observer
In 2024, nearly a quarter of buy now, pay later customers made a late payment, according to the Federal Reserve, a notable jump from 18% the prior year. Late payments can carry fees disproportionate to original sales prices, says Nadine Chabrier, senior policy counsel at the Durham-based Center for Responsible Lending, part of Self-Help Credit Union. “I don’t consider (it)...
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Payday and Other Small Dollar Loans

Pete Smith of the Center for Responsible Lending on the troubling rise in prohibited car title loans

Source
Clayton Henkel - NC Newsline
Car title lending. Thankfully, a lot of North Carolinians have never heard of this particular business because it’s long been prohibited under state law. Unfortunately, many residents of other states are all too familiar with these frequently predatory loans in which borrowers sometimes pay interest rates of as high as 300% and face repossession of their vehicle if they miss...
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Payday and Other Small Dollar Loans

From Unbanked to Banked

Source
The Connector Podcast | NC State University
In the latest episode of The Connector, The Collaborative Executive Director Marquita Robertson and Center for Responsible Lending Director of NC Policy Rochelle Sparko speak with Institute for Emerging Issues Communications Director Jennifer Heiss about what it means to be unbanked, and steps those who are unbanked can take to protect their money and get set up with FDIC insured...
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Consumer Finance

New report paints a bleak picture of how North Carolina's court system holds many of the state's poorest people accountable

Source
Bill O'Neil | WXII
The Center for Responsible Lending helped write the report. The group's spokesperson, Rochelle Sparko, said they're urging judges to waive civil penalties for those unable to pay them. "It is our position that this is a far better outcome for folks who truly are indigent, then converting fines and fees to a civil judgment largely because of those long term...
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Debt Collection & Settlement

NC Report Finds Converting Criminal Financial Obligations to Civil Judgments Results in Heavy Costs and Low Recovery Rate

DURHAM, NC - North Carolinians involved in the criminal justice system are assessed financial obligations that can add up to thousands of dollars—and most are poor and cannot pay them. The practice of converting these fines and fees to civil judgments has become increasingly common in the state, finds a report released today by the Center for Responsible Lending, Forward...
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Consumer Finance

Waiving Criminal Court Fees Prevents Harms of Civil Debt

Waiving Criminal Court Fees Prevents Harms of Civil Debt

Many people involved in the criminal legal system live on the economic margins. Most defendants are unable to hire their own lawyer due to indigency. In North Carolina, the average person in prison doesn’t have a high school diploma. The cost of involvement in the criminal legal system can quickly add up to thousands of dollars, but the people expected...
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Research
Consumer Finance

Amicus Brief: North Carolina Supreme Court - Townes v. Portfolio Recovery Associates (PRA)

Amicus Brief: North Carolina Supreme Court - Townes v. Portfolio Recovery Associates (PRA)

The Center for Responsible Lending, Legal Aid of North Carolina, North Carolina Justice Center, National Association of Consumer Advocates, Charlotte Center for Legal Advocacy, Financial Protection Law Center and Pisgah Legal Services partnered to filed this amicus brief in the North Carolina Supreme Court in Townes v. Portfolio Recovery Associates (PRA). Townes v. PRA is principally about the interpretation of...
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Amicus Brief
Debt Collection & Settlement