CONSUMER NEWS    RECALLS    COMPLAINT FORM    SCAM ALERTS  


Complain about a product or service

Small Claims Guide | Class Actions | Lemon Law | FAQ | Resources | Newsletters | Spanish
Automotive    Education    Electronics    Family    Finance    Health    Homeowners    Shopping    Travel   
NEWS   Latest |  Archives |  Auto |  Cells, etc. |  Computers |  Financial |  Health |  Homeowners |  Parents |  Privacy |  Scams |  Seniors |  Travel

North Carolina Declares Victory In War On Payday Lending



March 9, 2006

Payday Lenders
Payday Loan Lead Generators Settle FTC Charges
Tiny Virginia Town Stands Up To Payday Lenders
Payday Lenders Targeting Seniors
Payday Lenders Trumpet False Claims, Critics Charge
Pentagon's Predatory Lending Rules Faulted
Last Payday Lender Leaves West Virginia
Pennsylvania Class Action Challenges Payday Lender
Payday Lenders Fight Back in State Legislatures
Payday Lenders Fleece Consumers for $4.2 Billion A Year
Soldiers Pinned Down by Predatory Payday Loans
California Sues Payday Loan Business
North Carolina Declares Victory In War On Payday Lending
H&R Block To Settle More Payday Loan Suits
DOD: Payday Loans Affecting Military Readiness
States Want FDIC Crackdown on Payday Lenders
No Payday for Payday Lenders in Texas, New York
Payday Lenders Prey on African-American Neighborhoods
Payday Loan Report: Reform Needed
Illinois Warns of Payday Loans
Fast Cash Loans Charged with Illegal Practices
Cashback Payday Loans Banned in NY
---
Video: What is a Payday Loan?
Consumer Complaints

North Carolina has extracted agreements from three additional lenders to stop making payday loans, which are illegal in the state. State Attorney General Roy Cooper said the agreements mean that payday lending practices by all major companies operating in the state have now ended.

"We've fought payday lending at every turn and we're putting this industry out of business here in North Carolina," Cooper said.

"These payday lenders thought that they had found a way around North Carolina law. Now we're showing them the way out of our state," he said.

So-called "payday" loans are targeted at low income consumers, often struggling to make ends meet. Cooper says the lenders took advantage of their desperate circumstances to saddle them with outrageous terms.

For example, consumers who took out a typical payday loan of $300 from one of the three companies were required to repay the loan within two weeks, plus around $60 in interest. That amounts to an annual percentage rate of 400 percent.

Consumers who couldn't repay the loan at the end of two weeks were required to take out another payday loan to repay the first.

Under the consent agreements, Check Into Cash, Check ‘n Go and First American Cash Advance will stop making payday and other unauthorized loans in North Carolina.

Cooper said the companies will not only stop collecting interest and other fees on existing loans, but will pay a total of $700,000 to find efforts to help consumers adversely impacted by payday loans.

The money will go to several non-profit groups that provide credit counseling and financial literacy training.

Cooper said two of the firms plan to close down operations in North Carolina and leave the state, while the third will try to get a license as a consumer finance lender that operates under state rules.



Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.


Consumer News

July 5 2008

Print, mail, etc.


Recent Recalls & Safety Alerts

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F

Sign up now!


Consumer News & Alerts
Every Sunday

Sign up now!


Knowledge is free.
Knowledge is power.

Back to the top |

Advertisement


Home | Rogues Gallery | Good Guys | Complaint Form | News | Recalls | Search | Video | FAQ |
Consumer Resources | Small Claims Guide | Lemon Law | Newsletter | Contact Us
Advertise With Us | Testimonials | Newsroom | RSS Feeds | Radio | Job Postings




Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2008 ConsumerAffairs.com Inc.  All Rights Reserved.