N.C. Justice Center
Center for Responsible Lending
January 16, 2013

[Raleigh, NC]  After a campaign by consumer advocates and state leaders, a bank dropped its harmful payday lending program in North Carolina.   

Payday loans have been illegal in North Carolina for more than a decade, but that hasn't stopped all payday lending. For the past year, Regions Bank has used federal banking law to offer payday loans that are illegal for any other lender to make in our state.  These loans carried, on average, and annual percentage rate (APR) of 365%. Now, after significant pressure from consumer advocates and the state Attorney General's office, Regions has quiety dropped its payday lending program for North Carolina customers.  

"The people of North Carolina and the North Carolina legislature have consistently said they do not want ..."
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“We do not want North Carolina consumers subjected to payday loans. Payday loans are like a consumer needing a life preserver being thrown an anvil. It gets them on a debt treadmill, oftentimes.”

From "Regions Bank Assailed for payday-style loan," The News & Observer, Sept. 19, 2012

Payday loans trap customers in a long-term cycle of debt that leads to bigger financial problems, credit card debt, checking account overdrafts, closed bank accounts... even bankruptcy. 

While bank payday loans are marketed as short-term solutions to a cash shortfall, borrowers have an average 16 loans per year at triple-digit annual interest rates. A quarter of bank payday borrowers are on social security.