Payday Loans in Purlear, North Carolina

Payday Loans in Purlear, North Carolina: Understanding the Law

Payday loans have become a popular source of quick cash for many people in Purlear and across North Carolina. These loans are advertised as a way to get money fast, but they can come with steep interest rates and other fees that can make it difficult to pay them back.

However, it’s important to note that payday loans are illegal in North Carolina. This is because the state legislature passed a law in 2001 that made it illegal for lenders to charge interest rates higher than 36% APR (Annual Percentage Rate) on loans of $10,000 or less. Payday loans, which typically have interest rates of 300-500% APR, clearly fall outside of this limit.

Why Payday Loans are Prohibited in North Carolina

The North Carolina General Assembly passed the Consumer Finance Act in 1979 which capped interest rates at 36% for consumer finance companies. However, payday lenders attempted to exploit a loophole in the law, arguing that they were not subject to the same interest rate cap because they were not considered “consumer finance companies.”

To close this loophole, North Carolina lawmakers passed the Payday Lending Act in 2001, which included payday loans under the definition of “consumer finance loans.” The law also prohibited renewals or rollovers of payday loans, put a limit on the fees payday lenders could charge, and required lenders to be licensed with the North Carolina Office of the Commissioner of Banks.

What to Do if You Need Cash Fast

If you find yourself in a situation where you need money quickly, there are alternative options available that don’t carry the same risk as payday loans. Consider the following:

• Personal Loans: Many banks and credit unions offer personal loans with favorable interest rates and repayment terms. These loans are usually available to those with good credit, but you can shop around to find the best deal.
• Credit Card Cash Advances: If you have a credit card, you may be able to get a cash advance. While interest rates on cash advances can be high, they are typically lower than payday loans.
• Selling Items: Selling unwanted items, such as clothing or electronics, can be a quick way to get cash. You can sell items through online marketplaces or pawn shops in Purlear.
• Friends or Family: Borrowing from friends or family members can be a way to get the money you need without resorting to payday loans. However, be sure to treat the loan like any other loan, with clear repayment terms and a plan to pay it back.

Facts and Statistics about Payday Loans in Purlear, North Carolina

• Payday loans are prohibited by law in North Carolina since 2001.
• A recent study found that the average payday borrower in North Carolina has to take out eight loans a year, with each loan lasting an average of 17 days. This means that many borrowers are trapped in a cycle of debt from which it’s difficult to escape.
• In 2019, the North Carolina Justice Center reported over 1,200 consumer complaints against payday lending companies in North Carolina.

Apply Now

If you need a loan, TheGuaranteedLoans can help connect you with potential lenders. We are not a direct lender, but we work with a network of trusted lenders who can offer various loan options that meet your financial needs. Whether it’s for a personal loan or auto title loan, we can help you find the right lender and get the cash you need.

Click on the “Apply Now” button and fill out our online application to get started. Remember, be sure to borrow responsibly and carefully consider the terms of any loan before accepting it.