Seven years ago, North Carolina threw loansharks out of our state so they could not prey on struggling families, the cash-strapped unemployed or indigent elderly. But now the loansharks are back, tempting the General Assembly to let them back in. We need you to speak up and say, “Keep ‘em out!”
AARP and other advocates spent years getting rid of payday lending in North Carolina. Storefront and internet payday lenders have been illegal in NC since 2001. Some payday lenders kept operating under a variety of loopholes until action by the NC Attorney General and the NC Commissioner of Banks brought a halt to payday lending by all major companies in North Carolina in 2006.
Senate Bill 89 allows payday lenders to loan as much as $500 for up to 35 days. The fees charged for these loans amount to annual interest rates well over 300%!
Tell your Senator that you oppose Senate Bill 89. The last thing we need are 300+% annual interest rate loans. Click here to send them an email and let your Senator know:<http://action.aarp.org/site/R?i=sFOJV-db9pRBilyPC6OhAA>
* Payday loans are not needed in our state. Since 2006 North Carolinians have been able to find ways out of their financial emergencies without resorting to high-interest rate loans that trap borrowers in debt.
* Payday lending hurts our economy rather than creates good jobs. Evidence actually shows borrowers in payday loans spend less on real goods and services and spend hundreds of dollars to pay off their debt to out-of-state lenders.
* Payday lenders cannot survive without repeat borrowers. The average payday borrower takes out 9 loans per year and pays $525 in interest for a $375 loan. Only two percent of all payday loans are to non-repeat borrowers.
Tell your NC State Senator to keep payday lending out of North Carolina.<http://action.aarp.org/site/R?i=mEbJStGwDIyfzBtV1m377w>