Installment loan bill headed to NC House floor

May. 30, 2013 @ 02:54 PM

A bill raising the maximum amount consumers can borrow on short-term loans in North Carolina is poised for passage in the Legislature.

The House Banking Committee unanimously approved the bill Thursday, sending it to the full House. The Senate already passed a similar version.

The bill raises the maximum loan amount from $10,000 to $15,000 and lowers the maximum interest rate to 30 percent. It also allows for fees to defer payments, which opponents say encourage a never-ending debt cycle.

The committee changed the bill to lower interest rates after a certain point during repayment. Consumers would still pay higher interest rates on larger loans than is currently allowed.

Two watchdog groups changed their positions on the bill to neutral. The state Attorney General still opposes the measure.