“This is the same old rip-off we ran out of our state years ago. These overpriced loans trap borrowers in a cycle of debt many cannot escape. Payday lending was a bad idea then, and it’s a bad idea now.”
Cooper fought in court for years to chase payday lenders out of North Carolina. A bill filed yesterday in the N.C. Senate would allow payday lenders to open up shop again in the state, charging excessive interest rates on loans that must be paid back quickly.
Senate Bill 89 would amend the Check Cashing Licensing Act to allow a check casher/lender to pay out cash loans of up to $500 for a fee of 15 percent of the cash advance. On a typical loan repayable in two weeks, the annual percentage rate would be more than 300 percent.