Action NC is fighting a proposal to bring payday lending back to the state, asking its supporters to call and write state senators in opposition to a new bill.
The Action NC email uses the example of a Raleigh man who ended up paying $5,000 interest over five years on a $300 loan as a reason the loans should not be legalized.
Payday loans are short-term, high-interest loans that borrowers secure with post-dated checks. The loans get their name because borrowers are supposedly using the money to tide them over until their next payday. Critics say the loans trap borrowers in debt they can't escape as borrowers repeatedly roll them over. The payday industry says the loans can be a vital source of emergency cash.
The state outlawed payday lending about a decade ago, but a new bill backed by a powerful senator, Rules Chairman Tom Apodaca, and influential lobbyists aims to make it legal again.
Comments
Loan Term
February 19, 2013 - 4:28pm — shenikaenc@exci...Action NC might want to check their facts before issuing statements. Payday loans are useful and necessary to many people and it is a shame that this group didn't take the time to look into the bill. This bill has a 35 day maximum loan term - not 5 years. I feel bad for the Raleigh man who got into a bad situation, but that is an extreme example that will not happen under the new guidelines.