Critics say McHenry bill would revive NC payday lending; he disagrees



ASHEVILLE – Before North Carolina outlawed payday lending in 2001, credit counselor Celeste Collins often worked to help people buried in debt with payments due weekly on three to five loans.

One client nearly lost her house to foreclosure because so much of her income was going to repay seven payday loans, Collins said.

Such loans typically carry exorbitant interest rates and fees, so much so that a lender might collect two to five times the amount of a loan if the borrower took a year to repay it.

The woman needed money quickly because of an unexpected bill, couldn’t pay off the loan then kept borrowing more, said Collins, now president of OnTrack WNC, a nonprofit provider of financial education and counseling.

“You’ve got families who are not getting their food, people who can’t pay for medicine. It just goes on and on,” she said.

Source link


Comments are closed.