The North Carolina General Assembly has introduced a bill that would enable installment loan companies in the state to adjust loan fees to compensate for the ravages of the recession. The Jacksonville Daily News states that N.C. H810 would amend the North Carolina Consumer Finance Act to allow lenders to increase the processing fee on installment loans of $2,000 or less by as much as $100. A handling charge of $3 per month per $100 borrowed would also apply.
Fees on loans worry Marines
Marine Corps Installations East director of Legal Assistance Michael Archer took aim at the suggested changes to North Carolina quick installment loans, claiming that higher loan fees would "encourage usurious lending" and lead borrowers straight into a squalid debtors’ prison, straight out of Charles Dickens. In the process, he also denounced payday lending, which is already illegal in the state and not currently slated to return.
"We have a lot of businesses, particularly lenders, that target military installations, large places like Camp Lejeune and Fort Bragg," said Archer. "We have a very unsophisticated population as well. They have crosshairs on their backs and they are vulnerable."
Even though the installment loan and military loan corporations near the military base already have very tight restrictions on them near installations for instance Camp Lejeune, Archer still felt he needed to express concern. Whenever a customer needs a loan, they will discover it. It does not matter what restrictions are there.
"It's very difficult, both procedurally and practically, to put a place off limits," Archer told the Daily News.
Instruction center of fight
Marines and families of the Marines will be able to go to some educational workshops if H810 is put into law. These will be started by Camp Lejeune financial counselor Lewis Summerville. Added instruction would enable military consumers to make informed decisions concerning the use of private loans.
Such would be the case if educators like Summerville even considered adopting an even-handed approach to the military lending issue. According to the Jackson Daily News, the education that Marine families in North Carolina receive most likely won't be this instruction. They’ll most likely be taught the "just say no" approach that isn't really an instruction.
"We can only educate and make sure they make the right choice in not taking that loan," said Summerville.
Discover out for yourself
Private loans do not trigger poverty. They actually contribute to financial well-being, according to independent studies. If Michael Archer and Lewis Summerville had taken the time to read existing research, perhaps they’d have valuable information to add to the installment and military loan dialogue.
Information from
Jacksonville Daily News
jdnews.com/news/-91125–.html
eLobbyist
new.e-lobbyist.com/gaits/text/250150
North Carolina Consumer Finance Act
ncga.state.nc.us/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_53/Article_15.html
North Carolina professionals support installment loans
youtube.com/watch?v=gmDwppf-tGQ
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