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Consumer Finance Insights
September 2, 2015

North Carolina Judge Bars Payday Lender from Lending Activity

On September 1, 2015​, North Carolina Special Court Superior Judge Gregory P. McGuire issued a preliminary injunction​ barring a North Dakota-based online fast cash lender from advertising, lending, and collection activity in the state of North Carolina.  The preliminary injunction bars the lender and its affiliated companies from advertising, offering or entering into contracts to make loans, soliciting or collecting payments from consumers for loans, and selling​ or transferring any loans made to consumers.  The injunction also bars the lender and its related companies from destroying, altering or concealing records relating to loans made to North Carolina consumers.  This injunction will remain in place as the case goes forward.

The complaint was originally brought by the North Carolina Attorney General and the North Carolina Office of the Commissioner of Banks in December 2013.  The suit alleges that the fast cash lender enticed financially-stressed borrowers to take out personal loans subject to interest rates that exceed those allowed by North Carolina law.  These loans — ranging from $850 to $10,000 and containing annual interest rates from 89.68 percent​​ to 342.86 percent — allegedly resulted in at least 300 North Carolina consumer complaints.  The North Carolina Attorney General is seeking to cancel the loans, order refunds to North Carolina consumers, and permanently ban the lender and its companies from collecting on the loans or making future illegal loans to North Carolina ​consumers.

The post North Carolina Judge Bars Payday Lender from Lending Activity appeared first on Consumer Finance Insights (CFI).