14 Feb Payday Lending May Be Back In North Carolina
Consumers are in the target sights of somepredatorylenders, and bankruptcy lawyers in NC are gearing up for battle.
With the introduction of Senate Bill 89, and moving on a fast track, it may soon be open season on the most vulnerable folks in our society.
North Carolina Senate Bill 89was recently introduced in the 2013 North Carolina legislative session to allow payday lending once again. This is a horrible step backwards for North Carolina.
In 2001, North Carolina banned payday lending.
This was hailed as a tremendous victory for lower income folks, the elderly and even the military–those people targeted by the payday lenders.
The nationally recognized Center for Responsible Lending discusses payday lending and its detrimental effects on society.
North Carolina Attorney General Roy Cooper immediately expressed his opposition to this legislation. The Attorney General has been charged with enforcing state and federal consumer protection statutes and has seen the damage foisted on society by abusive lending practices. Yet, this type legislation marches on.
Not only is our state’s highest law enforcement authority against payday lending, but authorizing payday lending can directly impact our nation’s military preparedness. Holly Petraeus, wife of a four-star general, who has extensive experience with military members and their dependents, testified before the Consumer Financial Protection Bureau on how payday lending can impact military preparedness and devastate military families. Ms Petraeus has testified in North Carolina on the issues facing North Carolina military members.
So how does this relate to bankruptcy (after all, this is Bankruptcy Law Network)? When payday lenders were prevalent, their customers would often have to file for bankruptcy protection to escape the vicious cycle of debt. So, from a business standpoint, getting more and more people in debt is actually good for bankruptcy attorneys. But, just about every bankruptcy attorney stands in ardent opposition to this bill. We’ve seen the destruction that payday lending imposes on North Carolina families.
For our North Carolina readers, use this link to find your senator and tell them to vote “no” on payday lending.
Adrian Lapas, Esq.
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