North Carolina Payday Loans
North Carolina payday loans are prohibited, leaving borrowers looking for others means of quick cash. If you’re an NC resident in search for short term loans, it’s best to be informed with the possibilities on offer. However, there are a number of ways that you could get your hands on the quick cash that you’re searching for.
Are Payday Loans legal in North Carolina?
No, payday loans are illegal in North Carolina. Currently, in the state of North Carolina, it is illegal to operate a payday loan service. Under state law, payday loans, cash advance loans, or short term loans are not legal. Businesses that operate within state borders are not allowed to offer this service.
North Carolina General Statutes 53-281 and the North Carolina Consumer Finance Act N.C. Gen. Stat. 53-173 prohibit payday lending since 2001, and more recent amendments make it nearly impossible for payday lenders to squeeze in through loopholes.
All lenders in North Carolina are required to comply with the small loan interest cap of 36% APR.
What are the costs of a loan in NC?
North Carolina law bans short term lenders from offering loans with an APR higher than 36%. However, this doesn’t limit the fees you can be charged. So you’ll need to go over your loan contract carefully before you sign to be sure you can afford the total cost — principal and interest — of your loan.
Should I consider anything else before taking out a Payday Loan?
North Carolina has a number of other options that can help you make your everyday bills and expenses more affordable. Here are a few that may be able to offer assistance:
- Borrowing from family. This can come as an awkward conversation to have. However, they will most likely prefer to lend you money.
- Debt management agencies. If you are really struggling financially and have an unmanageable amount of debt. You should consider getting some advice.
- Credit unions. They offer a range of savings accounts as well as loans.
Can I get a Short Term Loan in another state?
No, unfortunately not. Online payday loans are also illegal in North Carolina. It’s important to note that there are NO legally practicing payday loan lenders within North Carolina.