Our guide will tell you everything you need about payday loans in North Carolina
You may be considering a payday loan if you’re facing a financial emergency, but in North Carolina, you’ll have to find another option. Our guide should help point you in the right direction.
Are payday loans legal in North Carolina?
Payday loans are illegal in the state of North Carolina.
North Carolina General Statutes 53-281 and the North Carolina Consumer Finance Act N.C. Gen. Stat. 53-173 govern check cashing businesses and prohibit payday lending. Payday loans have been illegal in North Carolina since 2001, but 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.
You may want to consider an installment loan instead
Be sure to check to confirm a lender operates in North Carolina and abides by the 36% APR cap.
Are there other loan options in North Carolina?
When you’re struggling mananging your everyday bills, you might not know where to turn. Fortunately, North Carolina has a number of programs that can help you afford normal costs of living. The Crisis Intervention program, Emergency Assistance program, North Carolina Food and Nutrition Services (FNS) and Low Income Energy Asisstance Porgram (LIEAP) all help people when they need it. Before you take out a loan, you can apply for one of these to see if it will help.
What are the typical costs of a loan in North Carolina?
North Carolina law bans small dollar lenders from offering loans with an APR higher than 36%. However, this doesn’t limit the fees and charges 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.
Have any more questions about North Carolina payday loans?
Can I get a payday loan online?
No, online loans are also illegal in North Carolina. Out-of-state lenders cannot legally provide payday loans to residents of North Carolina unless they are a tribal lender.
Who can I contact to file a complaint or report about a lender in North Carolina?
You should contact the office of the North Carolina Attorney General or the Commissioner of Banks.
Are auto title loans legal in North Carolina?
No. Because the terms are often very similar to payday loans and require you to supply a vehicle as collateral, North Carolina has also banned auto title loans.