If you find yourself in need of cash quickly, one option you may have considered is a payday loan. However, if you live in Naples, North Carolina, you may want to think twice before applying for one.
What Are Payday Loans?
Payday loans are short-term loans that typically come with high interest rates and fees. They are designed to be paid back in full with the borrower’s next paycheck.
While they may seem like a quick fix for financial emergencies, payday loans can lead to a cycle of debt for many borrowers.
Payday Loans in Naples, North Carolina
It’s important to note that payday loans are illegal in North Carolina.
In 2001, the North Carolina General Assembly passed the Check Cashing and Payday Lending Regulation Act, which made payday lending illegal in the state. This law expired in 2006, but the state passed another law in 2009 that extended the ban on payday lending indefinitely.
The North Carolina Attorney General’s office has been successful in fighting against payday lenders that have attempted to operate in the state. In 2013, the office reached a settlement with Western Sky Financial, a lender that was charging North Carolina consumers interest rates as high as 342% on their loans.
Why Are Payday Loans Prohibited in North Carolina?
The high interest rates and fees associated with payday loans can trap borrowers in a cycle of debt that is difficult to break free from.
According to the Consumer Financial Protection Bureau, the average payday loan borrower takes out 10 loans per year and spends almost 200 days in debt. This is because many borrowers cannot afford to pay back the full loan amount and end up rolling over the loan, which incurs additional fees and interest.
Many North Carolina lawmakers have argued that the high interest rates and fees associated with payday lending are predatory and harmful to consumers.
Interesting Facts and Statistics About Payday Loans in Naples, North Carolina
- In 2019, the North Carolina Commissioner of Banks received 68 complaints regarding payday loans from consumers in the state.
- North Carolina is one of 15 states that have prohibited payday lending.
- In 2018, the North Carolina General Assembly passed a bill that would have legalized payday lending in the state. However, the bill was vetoed by Governor Roy Cooper.
Apply Now
If you’re in need of cash, there are other options available to you besides payday loans. Consider reaching out to a local non-profit organization or credit union for assistance.
If you do decide to apply for a loan, TheGuaranteedLoans can help connect you with potential lenders. Keep in mind that we are a connector service, not a direct lender, and that we do not charge any fees for our services.
If you’re ready to apply for a loan, visit our website and fill out our online application today.