In 2001, the payday lending laws were allowed to expire. Payday lenders tried to circumvent the law and in 2006, the NC Attorney General was able to work out a deal with payday lenders who thereafter ceased doing business in North Carolina. You can read about it here: http://www.ncdoj.gov/News-and-Alerts/News-Releases-and-Advisories/Press-Releases/Payday-lending-on-the-way-out-in-NC.aspx.
Unfortunately, North Carolina has not seen the last of payday lenders. Banks are now getting into the act and coming up with their own creative ways to evade the prohibition on payday lending, as evidenced by this recent story: http://www.charlotteobserver.com/2012/09/19/3539841/regions-bank-assailed-for-payday.html.
Again, if you are threatened by a payday lender, a lawsuit is very unlikely to occur because the loans are still illegal here as of the time of this article. Payday lenders are attempting to make a comeback and with the change in legislative power, it is possible that they may re-emerge in the future.
Copyright (c) 2014 by Rachel Lea Hunter
www.rachelhunterlaw.com
All rights reserved. No part of this article may be reproduced or utilized in any form, other than for the reader’s sole personal use, without permission in writing from the author.
