Payday Loan Laws in North Carolina
Payday loans are a valuable resource for people who are in need of a quick loan, for short period of time. These loans most often can be approved within twenty-four hours, and do not require tedious, and long review and application processes. Generally, your loan can be funded the same day within 24 to 48 hours.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for North Carolina Payday Loan Laws is provided for your convenience.
Anyone considering North Carolina payday loans should become familiar with the current regulations and rules that govern this industry at the present time. The loans in this state have been precarious, with several bumps. From 1997 to 2001 payday loans were illegal in North Carolina, and the state legislators voted not to renew the legislation allowing them. Recently, North Carolina passed statute 53-275, which specifically allowed payday lending. This new law considerably lessened the interest rate, making it much more civilized than before. As an example, North Carolina will permit 15% charges on a loan amount of $300 maximum. This gives the consumer $255 cash, while the lender pockets forty-five dollars in fees. If within two weeks this $300 loan is repaid at this rate, the APR will remain at 458%, which falls within the national average of interest for loans of this kind. The customer writes a post dated check to their payday; which will includes the loan amount plus interest, usually a minimum of around fifteen dollars for every $100 loaned.
Under the new North Carolina licensing requirements, the loan facility must pay a $500 investigation fee along with a $250 fee. They must also renew their license yearly and pay a $250 fee, plus an extra fifty dollar fee for each separate office. So, in the long run the North Carolina legislators found a way in which the North Carolina citizens could have an equal opportunity to acquire payday loans the same as other states can.
While each individual payday loan company has different requirements, each company requires an individual to match the following, in order to finish their loan application and obtain a fast approval. Each individual should have a job, either full-time or part-time with a minimum monthly cash flow that can cover the loan that you are asking for. The loan applicant should be at least eighteen years of age or older, and a permanent citizen that is in good standing. The final fulfillment should be an active, and valid checking account that is in good standing.
As you are looking at different lenders, you will find that each lender has different commissions, fees, interest rates and loan amounts. Many lenders will require you to have detail of employment history, while others call for bank history. Lenders are always looking to make sure that you will be able to repay the loan that you are seeking, without placing undue stress upon you so you do not get into payday debt.
These loans are unsecured, so that is why payday loan companies strictly check to confirm your employment and income.