The General Assembly of North Carolina has introduced a bill that is aimed to enable the state companies providing installment loans in order to adjust fees charged on loans to compensate for losses to recession. The Consumer Finance Act of North Carolina that would be amended by the H810 is aimed to allow cash advance lenders to raise the processing fee on advance loans of $2,000 or less by as much as $100. Besides, the lawmakers are also willing to add a $3 handling charge per month for every $100 loaned.
The Major Opponent Of The Bill
Michael Archer, the director of Legal Assistance of Marine Corps Installations East, claims that the higher fees on installment loans may encourage usurious lending leading the borrowers directly into debt. In addition, he denounced payday loans which are already illegal in the state and are not planned to be returned.
Additional Education May Assist Military Consumers
Lewis Summerville, Camp Lejeune financial counselor, is already prepared to launch a series of educational workshops created for Marines and their families as soon as H810 is signed into the law. The aim of additional education practices is to enable military customers for making informed decisions concerning the use of installment loans.
In fact, following the data performed by the independent studies, installment loans are more likely to contribute to financial well-being rather than to become the reason of poverty. However, the held researches seem to stay unnoticed by the regulators.