YOUR VOICE, YOUR VOTE: Payday and Car Title Lending out of North Carolina

North Carolina is one of several states that wisely prohibit payday and car title lending. Payday and car title loans charge high annual percentage interest rates (APR), often of 400 percent or more. The loans have short terms, making it hard for borrowers to pay them off in time; as a result, borrowers are “flipped” from one loan to the next. These loans trap consumers in long-term, high-cost debt while lenders make millions in profits.

Payday and car title lenders are big national corporations that often target low-wealth consumers, including military personnel, minorities, and families living paycheck to paycheck. It is estimated that North Carolina families save hundreds of millions of dollars every year because these loans are illegal here.

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