Why We support the Consumer Finance Act | Americans for Prosperity

Why We support the Consumer Finance Act
- May 2011 -

The ?Consumer Finance Act? (H810) seeks to update a 28-year-old law governing consumer loans in North Carolina by providing more flexibility for borrowers and lenders. Consumer finance lenders serve an important gap in the financial sector by providing lending options to North Carolina?s underserved middle class. The average consumer finance loan borrower in North Carolina has an annual income of $55,000-$75,000.

Families are in the best position to decide what type of loan is best for their individual situation. H810 protects an important option for many families in North Carolina, while maintaining oversight of the industry.

? H810 would increase the available loan amount from $10,000 to $15,000 to better serve North Carolinians and their lending needs.
? H810 would cap the fixed interest rate lenders could charge at 18%.
? H810 would increase the duration of available loans providing necessary flexibility to families.
? H810 would limit returned check fees to $30.

Credit card issuers have leveled complaints against consumer finance lenders claiming to protect citizens protesting the higher Annual Percentage Rate (APR) on consumer finance loans. APR is an important measure, but the APR doesn?t tell the full story. Consumer finance loans provide better consumer safeguards than credit cards; such as fixed rates, fixed payments, three day rescissions, interest rate caps, and lower returned check fees.

Source: http://americansforprosperity.org/051611-why-we-support-consumer-finance-act

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