The closing of payday lending shops this year in North Carolina doesn't change working people's need for short-term loans, some House members say.
Several members have filed a bill that would create a new type of loans of up to $3,000 designed to help consumers improve their credit ratings when they repay them on time, helping them qualify for more traditional loans in the future.
"It will allow people to get credit and to rebuild their credit score," Rep. Beverly Earle, D-Mecklenburg, one of the bill's sponsors, said Thursday. "Traditionally, they don't have anywhere to go."
But opponents of payday loans contend the plan proposed by the House is too similar to payday lending with high interest rates compared to credit cards and monthly fees that make it hard to get out of a cycle of debt.
"We're still examining the proposal, but it appears that the interest rates and fees on these new loans drive the cost too high for consumers," Attorney General Roy Cooper said. "We should not rush in to replace payday lending with another loan product that hurts people who are having a hard time making ends meet."
This isn't the first time legislators have filed a bill seeking a new kind of fee structure for small loans that consumer finance companies argue aren't profitable.
Why is the house discussing this? They should have left the payday lenders alone as long as they followed the old law. If a lender failed then shut him down. People should be free to make their own decisions, if it's a dumb one so be it. That is part of America. You learn by messing up, we don't need a momma state to protect us from ourselves. How the hell are we going to learn to be good responsible citizens if our government babies us? Or is that what they want?