Payday Advance Lenders Shut Down in N.C.
Another state has tightened up restrictions on payday loans - so much so, cash advances may not even exist in North Carolina anymore. The three major payday loan lenders still operating in there are about to close their doors for good.
State Attorney General Roy Cooper says deals with Check Into Cash, Check ‘n Go and First American Cash Advance just about eliminate payday lending in the state.
The three firms will pay $700,000 to non-profit credit counseling offices as part of the deal. The agreements come after the state banking commissioner ruled in December that Advance America was breaking state lending laws by charging an APR of more than 400 percent.
North Carolina’s Consumer Finance Act caps annual percentage rates on small loans at 36 percent. Advance America appealed the ruling, but agreed to close their offices while the matter is being sorted out. Cooper says the three lenders who entered Wednesday’s agreement operate 152 outlets statewide.