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The folks at Progress NC have identified a simple way to end the General Assembly’s absurd attempt to re-legalize predatory, triple-digit interest payday loans in North Carolina: The State’s Governor can simply reiterate the opposition to the industry that he voiced in his 2007 campaign for re-election as Mayor of Charlotte.

This is from a Progress NC release sent out this morning:

RALEIGH – Progress NC today called on Gov. Pat McCrory to speak out against payday lending, a position he’s already taken. A new bill filed in the NC Senate would bring predatory payday lenders back to North Carolina for the first time since 2006. Senate Bill 89 would allow payday lenders to charge interest up to 391% annually. 

In a 2007 mayoral debate, Pat McCrory spoke out against payday lending: Read More

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As they have several times in past years, experts who counsel vulnerable soldiers, sailors, airmen and marines are speaking out against the expansion of predatory lending in North Carolina. Today, the Navy-Marine Corps Relief Society sent a letter to the General Assembly in which the group makes clear what a terrible idea it would be to re-legalize “payday” lending as is proposed in recently introduced legislation.

According to the letter (which is signed by the Society’s President, Retired Admiral Steve Abbot):

“The negative impact of payday loans on military readiness is profound, and the harm caused by these loans is significant; exhausting resources that could be used in other ways, and creating unnecessary hardship for military families (and others).” 

Click here to read the entire letter.

 

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Payday loansWell, that didn’t take long. Sensing with good reason that it’s now open season on struggling families at the North Carolina General Assembly, the predatory “payday lending” industry is already banging on the door on Jones Street seeking to have its parasitic industry (which was banned in the state in 2001) made legal once more in North Carolina. Senators Jerry Tillman and Clark Jenkins filed the bill yesterday and it will be formally introduced in the Senate today.

As we have reported repeatedly in this space over the years, “payday lending” is the pernicious practice of making short-term loans (typically of a week or two in length) to desperate people at effective annual interest rates of several hundred percent. Read More

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In case you missed it, the North Carolina Legislative Black Caucus sent a powerful letter to Regions Bank this week. Regions is the Alabama bank that’s trying to reintroduce the banned practice of high-cost, predatory payday lending in the state. The group joins Attorney General Roy Cooper and a large group of consumer protection groups calling on Regions to halt making the loans — which can have interest rates as high as 365% APR.

 

 

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Dozens of consumer advocates and concerned citizens staged a demonstration in front of Regions Bank in Raleigh Wednesday to send a strong anti-predatory lending message.

The NC General Assembly made payday lending illegal in 2001, and the Attorney General chased out the remaining payday lenders in 2006. But now, Regions is offering North Carolinians 365 annual percentage rate (APR) loans.

Activists say the out-of-state bank is exploiting a federal loophole that allows banks to ignore the state’s usury laws.

“Banks should not be allowed to undermine our state usury cap,” said Al Ripley, director of the Consumer Project at the NC Justice Center. “We’ve made a choice in North Carolina to stand up against abusive loans, and we need to affirm that choice now.”
“This product simply traps struggling families in debt,” said Chris Kukla of the Center for Responsible Lending. “Our research shows that the average bank payday loan borrower ends up taking 16 of these loans in a year, which translates into being in debt to the bank an average of 175 days per year.  Put another way, the average borrower who takes out a $300 loan will end up paying at least $480 in fees.”

To hear more from those protesting the predatory products, click below:

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