With the state of North Carolina taking a heavy interest in the financial affairs of consumers, many have started to wonder which other states will follow suit. Many others have also started wondering if the changes that were pushed through in North Carolina will even hold, or if they will actually end up being reversed. Working to limit the amount of interest that payday loan companies can charge in North Carolina has been a very popular change that many people have been looking forward to.
The biggest problem that is occurring recently though, is the circulation of a petition that is designed to help reverse the law and allow voters the opportunity to list the interest rate cap on short term cash advances. Whether the petition drive will actually be successful or not is so far yet to be seen, however it is a problem that is happening quite frequently around the North Carolina area. Many people though are arguing that petitions are not being presented fairly.
For consumers who are seeking relief from payday loans in NC it is a huge opportunity to lower the rates, with interest rates dropping down to only 28% rather than the triple digit rates that are currently charged. For many consumers this means the difference between a loan actually being affordable and a loan that is completely unreasonable. Getting the biggest benefits from payday loans in North Carolina means that it is extremely important to find the cheapest loans possible, which is the main intention of the lowered interest rates.
It is important to realize that many people are arguing that by reducing the interest rates for payday loans it will be impossible for many businesses to continue to operate. This hardship is claimed to also bring the problem of reducing the number of payday loan locations around the state, which in turn can significantly impact the employment rate for the state. While these are claims that have so far been made, the interest rate cap has not gone into effect yet and the fallout from the change is yet to be determined.
With the number of people trying to have the ban recalled growing higher it is no doubt that many people are nervously sitting around waiting on the results. With a growing sense that many people are going to be left to decide the fate of the interest rate cap again in an upcoming election the fate of the payday loan industry is again up in the air.
Of course the reduced interest rates are best for consumers, but what about all of the jobs that can be lost if the cash advance companies start losing massive amounts of money. With all of the potential problems that can arise, there is still a ray of hope that consumers in North Carolina will be able to save a substantial amount of money. Because of the reality that it is not for certain that the interest rates will be actually lowering many consumers are still left trying to determine what their options are. Additional measures that are considered for North Carolina is the limit of only permitting 4 payday loans per consumer each year, which is intended to reduce dependence on the loans.