DOD, State Oppose Measure Allowing Lenders to Raise Fees on Short-Term Loans
The Pentagon and the North Carolina Office of the Commissioner of Banks are fighting a measure in the North Carolina legislature increasing the maximum fees lenders can charge on short-term loans, saying it allows lenders to take advantage of young service members and their families.
The changes in House Bill 810 would double the annual interest rate charged on a 12-month, $1,000 loan from 37 percent to 76 percent, reports WRAL.com.
“They absolutely prey on these folks,” Mike Archer, regional legal assistance director for the Marine Corps, told the station. A representative of short-term lenders said the legislation was needed as the fees on their loans haven’t increased in 28 years.