When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in North Carolina and everything else you should know about how payday advances work.
North Carolina doesn’t allow payday loans and some other forms of short-term lending. However, there are a few programs you should know of before you stop your search.
Are payday loans legal in North Carolina?
No, payday loans are illegal in North Carolina.
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 other short-term options are available in North Carolina?
North Carolina has a number of programs that can help you make your everyday bills and expenses more affordable. Here are a few that may be able to offer assistance:
- Crisis Intervention Program (CIP)
- Emergency Assistance Program
- Food and Nutrition Services (FNS)
- Low Income Energy Assistance Program (LIEAP)
- Work First Cash Assistance
- Medication Assistance Program (MAP)
- Medicaid and NC MedAssist
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 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.
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