North Carolina payday loan laws are cut and dry. Up until 2001, the practice of issuing payday loans was completely legal. But North Carolina decided to rule against the legislation allowing it to continue with the help of Attorney General Roy Cooper.
North Carolina now has specific laws regarding usury or small-loan rate caps that would make payday lending illegal. Specifically under the rates usually charged with these types of loans. Subsequently, it is now prohibited.
According to the State Attorney’s General’s office, they don’t consider a payday loan debt a legal and enforceable debt. Although when the client borrowed the money, the debt should be paid back. But the payday lenders are strictly limited in their course of action.
Payday Loans in NC is Uneven Online
The act of payday lending via the internet, though, exists since regulation is very uneven. Payday lenders can often get around the NC state laws by offering loans over the Internet (Still Prohibited). But the lenders are using one of the alternative business structures: cash rebates, or CSO “Credit Services Organization” method.
If the lender offers small loans using the above allowable methods, the interest rate cap on loans is 36% per year.
If a citizen of NC borrowed the money, the debt should be paid back, but nothing more. North Carolina isn’t the only state to place these laws on payday lenders. And you should make sure that you know the facts before getting a payday loan in NC. These lenders are very aggressive in collecting. They will call your employer, references, and you.
Lastly, if the payday lender or debt collector is harassing you, threatening to garnish your wages, or threatens you with going to jail, you can file a complaint against them.
What Can You Do If You Have Too Many Payday Loans
North Carolina Payday Loans Payday loans are short-term cash advances that allow people to borrow small amounts of money for quick use. These types of loans are not regulated by the federal government, and they have become increasingly popular due to their convenience. However, these loans carry high interest rates and often result in long repayment terms. If you find yourself struggling to pay back your payday loan, you may want to consider alternative options. North Carolina Debt Relief If you are having trouble paying off your payday loan, you might want to consider seeking out debt relief services. There are many ways to get rid of payday loan debt, including bankruptcy, wage garnishment, and credit counseling. You should always seek professional advice before making any decisions about your financial situation.
Credit Counseling Services
One way to eliminate payday loan debt is to seek out credit counseling services. Credit counseling services offer free guidance and assistance to people who are facing difficult financial situations. Many companies provide credit counseling services, and some even specialize in helping individuals deal with payday loan debt. We specialize in only payday loan debts and installment loan debts.
Bankruptcy Options
Another option for eliminating payday loan debt is to file for personal bankruptcy. Bankruptcy laws vary depending on where you live, but, filing for bankruptcy will stop creditors from contacting you and prevent them from taking legal action against you. In addition, if you successfully complete your bankruptcy case, you will no longer be responsible for repaying your payday loan debts.
We have helped so many North Carolina residents get out of these loans, so we can absolutely help you as well. Please fill out the form here on our site for a free quote or call us directly at 877-734-6700
We can help you navigate through these times. And you shouldn’t feel helpless.
