North Carolina lawmakers are stepping up to the plate for installment loan corporations with bill H810. The Jacksonville Daily News reports that N.C. H810 would likely amend the North Carolina Consumer Finance Act to allow lenders to increase the processing fee on private 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
Borrowers would likely be affected by the higher loan fees that "encourage usurious lending" and put borrowers into a debtors prison easily, according to Michael Archer. He is the Marine Corps Installations East director of Legal Assistance. 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 businesses near the military base already have very tight restrictions on them near installations such as Camp Lejeune, Archer still felt he needed to express concern. Wherever need exists, however, consumers find a way.
"It's very difficult, both procedurally and practically, to put a place off limits," Archer told the Daily News.
New topic of instruction inserted
If H810 is signed into law, Camp Lejeune financial counselor Lewis Summerville will start up educational workshops for any families of Marines. Added instruction would likely enable military customers to make informed decisions regarding the use of personal financing.
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 instruction that Marine families in North Carolina receive most likely won't be this instruction. They’ll probably be taught the "just say no" approach that isn't really an education.
"We can only educate and make sure they make the right choice in not taking that loan," said Summerville.
Educate yourself on it
Private loans don't 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.
Articles cited
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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