Charlotte’s Action 9 is reporting that a Lincoln County woman said she applied for a payday loan online but canceled it. Now, collectors have been calling demanding repayment. Elizabeth Ingle said what she did online led to a series of threatening phone calls that have left her in tears. Click on the image below to watch the full story.
So what happens if you experience a collection scam? CFSA released a statement earlier this year about rogue debt collectors. Here’s a snapshot from what our Board Chair D. Lynn DeVault said:
“It is simply wrong to pursue criminal complaints against consumers who have defaulted on personal debt,” said D. Lynn DeVault, board chair of the CFSA. “Lenders should be working with their customers to figure out a solution. Our members offer borrowers an extended payment plan at no extra cost to the borrower and adhere to CFSA Best Practices which prohibit any criminal recourse.”
CFSA’s Best Practices state, “A member will not threaten or pursue criminal action against a customer as a result of the customer’s check being returned unpaid or the customer’s account not being paid.”
Chris McKinley, president and CEO of Green Cap Financial, a five branch consumer loan company headquartered in Burlington, North Carolina, goes on the record about North Carolina HB810.
An editorial from today’s Star News (Wilimington, NC) cried foul about the recent small-dollar lending bill that passed the NC House of Representatives last week. In particular, the story accuses the lending industry of using its political contributions to gain influence over state lawmakers. What the editorial does not address, though, is the validity of the legislation itself. We hope that others will take a look at the actual impact of the bill, and not the politics surrounding it.
Mike Archer directs legal services for Marine Corps families on the East Coast. He appeared Wednesday to speak out against H810, a North Carolina bill that would allow consumer lenders to charge higher interest on larger loans.
Under current law, lenders can charge 36 percent interest on the first $600 loaned. H810 would raise that ceiling to $1500. Archer spoke on behalf of the Department of Defense and Defense Secretary William Gates. ”Let me make something perfectly clear: the Secretary is opposed to House Bill 810 in its original form. And the Secretary is opposed to the amended House bill.”
Legislation in the North Carolina House of Representatives that would increase fee limits on small-dollar, unsecured loans for members of the military is making waves far beyond North Carolina. A vote on the bill, which was supposed to happen yesterday, has been delayed due to heavy opposition from military representatives. One of those military representatives who is apparently taking part in the fight against the legislation: Defense Secretary Robert Gates. It is unusual to see such a high-ranking official get involved in state politics, but this seems to be the exception. It remains to be seen just what impact Secretary Gates’ opposition will have on the outcome of the legislation. It should make for an interesting vote.
A North Carolina newspaper goes all Shakespeare in a diatribe attempting to justify why payday loans should remain outlawed in the Tar Heel state. To allow consumer freedom or not allow consumer freedom, that is the question.
… N.C. General Assembly is considering House Bill 810, which would relax restrictions on “consumer finance” companies that include predatory and payday lenders.
A North Carolina advocacy group is holding a meeting to get ideas for the new Bureau. From the story:
On Friday, some North Carolinians will provide input on what the CFPB should look like.
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Peter Skillern, executive director of the Community Reinvestment Association of North Carolina, explains that while the CFPB has a directive, how it will be accomplished is still open for input.
“This is an opportunity for North Carolina advocates, lenders and policymakers to say what we hope the CFPB would look like and what it will do.”
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Skillern’s group is sponsoring the local meeting. The invitation-only forum is being held at the Friday Center, Chapel Hill.
Everybody falls into debt sometimes. Whether it’s your students loans, your credit card that you forgot to pay last month, or just an overdraft in you bank account.
But if you’re living or studying in North Carolina, things might just be a bit easier. The North Carolina State Employees’ Credit Union NCSECU) understands that things come up in life that might put you in need of cash, a loan, or make you late on a payment or two. And they’ve got a bunch of solutions.
According to creditbuildersalliance.org, the NCSECU is the biggest “payday lender” in North Carolina. This basically means that the NCSECU gives out small, short-term loans that help borrowers cover longer-term debt. This is also sometimes known as a cash advance.
Why doesn’t the state allow some competition from the private sector?
North Carolina Banking Commissioner Joseph Smith issued this banality during a speech yesterday:
Smith said that banks should be accessible to deserving poor families so they aren’t forced to use “alternative financial services.” He was referring to companies such as payday lenders, which have been accused of high rates and abusive practices.
You would think a banking commissioner would understand the finances of the business.
The head of the installment lenders association in North Carolina defends his industry citing the needs of consumers for small loans. We agree with him and think consumers could also benefit from more choices. From the story:
We still believe this is the most responsible credit option, particularly when compared with the cost of overdraft protection, credit card charges, or refund anticipation loans often used by lower income individuals. Unlike the tricky terms of frequently criticized consumer loans, traditional installment loans are simple, understandable and sustainable.
