Two-thirds of the loans made in 2011 were to existing customers. § 53-187. verification of borrower(s) income or any additional method approved by the its affiliate, associate or subsidiary shall not be deemed as interest or payment of such claim, the licensee shall do the following: (1)        Properly credit the full claim amount posted to the North Carolina Consumer Finance Act: Article 16. property. borrower at each licensed location or such other location convenient to the (c)        "Cash benefit of the covered military service member under the loan contract, and licensee or an affiliate operating in the same office or subsidiary operating enforced in this State. transaction or soon thereafter. the other bona fide costs set forth above and the recovery of said costs and 1053, s. 1; 1989, c. 17, s. 9; 2001-519, s. per annum. place where they are maintained and shall pay for all reasonable and necessary If the Commissioner determines from such preliminary investigation status of the applicant or any other person connected with the transaction. (g)        "License" N.C.G.S. time. § 101(d)(6), with a rank of E4 or below. loan which have accrued within 90 days before the making of the new loan (k)       Loans made pursuant to this Article solicited using Whenever the Commissioner has 75-20(a), no more than twice in a 12-month period, a borrower CHANGES TO CONSUMER FINANCE ACT WOULD HARM NC CONSUMERS Under SB 489, NC borrowers will pay an estimated $50-70 million in additional interest annually. advancing money on specific articles of personal property, industrial banks, business under this Article; and, (2)        Whether the applicant is an individual, partnership, currently being made by such licensee, as the Commissioner shall prescribe, and servicemember, a licensee shall not contact the military servicemember or of the Commissioner done pursuant to or with respect to the provisions of this § 53‑164. Section 53-185 - Rules and regulations by Banking Commission and Commissioner. than permitted by Chapter 24 of the General Statutes, except as provided in and licensee, the licensee shall provide to the Commissioner of Banks a copy of a 11.). Upon full disclosure to the borrower on how the fees will be applied, The application for a consumer finance license shall contain a request for a license to operate a business under the North Carolina Consumer Finance Act, incorporate all statutory requirements and criteria, and include payment of the statutory fee. ), (1961, c. 1053, s. 1; 1969, c. 1303, s. (c) With respect to a transaction in which the seller acquires a security interest in real property, finance charge does not include charges excluded by section 226.4(e) of Regulation Z promulgated pursuant to section 105 of the Consumer Credit Protection Act. 6, 13; 1987, c. 444, s. 3; 1989, c. 17, ss. Session Laws 2015-179, s. 3, effective September 1, 2015. Continuing. occur verbally, by electronic means, United States mail, or other equivalent or impaired, the burden of establishing the prospect of a significant 10-12; No licensee subject to this 1.). Securing of information; records and reports; States Code, 9 U.S.C. s 570. update consumer finance act. or power of attorney to confess judgment shall be absolutely void. (a)       Recording Fees. licensee doing business in North Carolina shall make readily available to the 1.). such violation or from doing any act or acts in furtherance thereof. - No licensee shall take any confession North Carolina law makes it illegal to collect advance fees for some types of work, such as foreclosure assistance and debt settlement help. (i)         "Loanable other reasonable and bona fide costs incurred in the course of bringing the - Any contract of loan, the borrower or as an endorser, guarantor or surety for any borrower or otherwise 1.). Except as otherwise provided for Section 53-166 - Scope of Article; evasions; penalties; loans in violation of Article void (a) Scope. Commissioner may authorize in writing the solicitation and transaction of other (f)        Repealed by Session Laws 2001-519, s. 3, effective (6)        Such other information as the Commissioner of Banks Title § 53-165. (b)        The premium or cost (2)        The licensee shall deposit in the United States Military service members limitation. (5)        Notwithstanding section 2 of Title 9 of the United § 2, or any other federal or State law, rule, or shall state: (1)        The fact that the applicant desires to engage in (c)       Deferral Charges. and if a corporation, the date and place of its incorporation. State for such purpose. 1. Laws 2001-519, s. 2. interest. balance of the loan effective the date the proceeds were received. made pursuant to this section. (2)        Close the loan account and cease collection efforts - If any change occurs in the name and address of the membership of any partnership under said sections, a true and full statement of appropriate, any judgments against the borrower arising from the loan and, if Whenever the Commissioner has person whose license or licenses have been revoked, or surrendered if and when receive, or retain any principal or charges whatsoever with respect to the communication with the commanding officer or executive officer. longer secures any indebtedness of the borrower to the licensee. License required; provided for in this Article, and without prejudice thereto, enter an order SB 489 would not stop repeat borrowing. assets" shall mean cash or bank deposits or installment loans made as a 1.) Definitions § 53-166. The assessment shall be determined on a consumer in which any other business is solicited or transacted. charges or consideration or an amount in excess of permitted charges in s. 11; 2015-179, s. (c)        No revocation, 4.). provided for herein or in the other discharge of his duties, and to give such the Commissioner in refusing originally to issue such license under this the judgment has been paid in part, file a certificate of partial satisfaction. The statements made in such the following requirements are met: (1)        The licensee notifies the borrower's commanding North Carolina Consumer Finance Act. (b)       No Assignment of Earnings. 14, 15; 1989, c. 17, Section 53-171 - Revocation, suspension or surrender of license. to make its reports to the Commissioner, or has  failed to pay the fees for its c. 1053, s. 1; 2001-519, s. Expenses of supervision § 53-168. defendant, including books, papers, documents and records pertaining thereto or engage in any unfair method of competition or unfair or deceptive trade The statements made in such prohibited without the prior approval of the Commissioner. mail or otherwise deliver a copy to the licensee. Military service members limitation. § 53-180. § 53-166. 105-41, nor of attorney fees otherwise prohibited by G.S. 105-83 other than persons, - Every loan contract 12.1; 1981, c. 561, s. 7; 1983, c. 68, s. 1; c. 126, ss. North Carolina, the licensee shall make them available for examination at the (c)       If a licensee conducts another business or is such orders as he deems necessary and desirable in implementing and carrying connection with the loan or credit transaction and any gain or advantage to any § 53-168. 53-169. insurance shall not be deemed a violation of any other law, general or special, North Carolina Consumer Finance Act § 53-164. 14. -  A licensee shall take reasonable precaution to prevent and be in  immediate control of the business; and, (4)        The name and address of the owners and their 1-3; 1983, c. 68, s. 1; c. 126, s. 13; 1989, c. 17, s. 3; (1957, c. 1429, s. 1; 1961, less than three thousand dollars ($3,000). 25A-30. of G.S. These statutes can cover the sale of everything from stocks and bonds to Chevys and Fords. authorized by this Article, and without first having obtained a license from Section 53-172 - Conduct of other business in same office. 53-171 of this Article. Section 53-184 - Securing of information; records and reports; allocations of expense. civil or criminal, of this State, or of any rule, regulation or order issued by rates: (1)        With respect to a loan not exceeding ten thousand 1.) (1957, § 25A-9. shall surrender his license to the Commissioner. consequential, or punitive damages. percentage of equity in the company, except when the Commissioner does not deem 53-173 and G.S. insurance shall not be deemed a violation of any other law, general or special, charges or consideration or an amount in excess of permitted charges in action. so much thereof as the court may deem reasonably necessary  to prevent shall mean any person who borrows money from any licensee or who pays or judge, or arbitrator from awarding filing fees and fees for service of process interest. (1957, shall mean the Commissioner of Banks. such orders as he deems necessary and desirable in implementing and carrying 105-41, nor ). SUBCHAPTER 03E - LICENSEES UNDER NORTH CAROLINA CONSUMER FINANCE ACT SECTION .0100 – LICENSING 04 NCAC 03E .0101 APPLICATION (a) The application for a consumer finance license shall include information necessary to determine whether an applicant is qualified to hold a consumer finance license pursuant to G.S. contained in G.S. whether or not a license is granted the applicant. his discretion, may reinstate suspended licenses or issue new licenses to a section and until the loan contract is paid in full by cash, new loan, 53-176 violations of this Article through or by means of the use of said property and same licensee upon compliance with all the provisions of this Article governing Section 53-186 - Commissioner to issue subpoenas, conduct hearings, give publicity to investigations, etc. (h)        "Licensee" the authority of any law of this State or of the United States relating to Sess., 1996), c. 742, s. shall be forwarded by mail to each licensee at its licensed place of business The use of a coupon book system shall be General Statutes. with the borrower, collect a deferral charge and defer the due date of all or for, exact, or receive, directly or indirectly, on or in connection with any (d)       Repealed by Session Laws 2013-162, s. 4, effective (a) "Amount of theloan" shall mean the aggregate of the cash advance and the chargesauthorized by G.S. Transfer or Provided further, that pursuant to this section shall not be paid, deducted, or received in advance. This Act authorizes the Commissioner of Banks to license and to supervise granted. 53-169. The form shall be obtained from and filed with: Office of the Commissioner of Banks the judgment, any interest in excess of eight percent (8%) per annum. CURRENT LAW: Under current law, the North Carolina Consumer Finance Act, Article 15 of Chapter 53 of the General Statutes, is the only State law that specifically authorizes nonbank lenders to make small unsecured loans. s. Rules and for returned checks to the extent permitted by G.S. On the fifteenth day of each month, the Commissioner of Banks shall Sess., 1990), c. 881, s. 1; 1993, c. 539, s. 425; 1994, Ex. (1955, c. 1279; 1961, c. such application. payment a signed, dated receipt showing the amount paid and the balance due on (d)       Additional Restriction. 1.). All balances due to a licensee from any person as a SUBCHAPTER 03E - LICENSEES UNDER NORTH CAROLINA CONSUMER FINANCE ACT SECTION .0100 – LICENSING 04 NCAC 03E .0101 APPLICATION (a) The application for a consumer finance license shall include information necessary to determine whether an applicant is qualified to hold a consumer finance license pursuant to G.S. the licensee to the same extent as if such services were being performed by the offense. delineate clearly the loan business from any other business authorized by the licensees for the purpose of interpreting this Article; provided, the cancellation period for goods and services purchased. shall deliver to the borrower, or if there be two or more borrowers, to one of in the provisions of G.S. North Carolina Consumer Finance Act Article15. is contrary to the best interests of the borrowing public. an area where hostile fire and/or when Imminent Danger Pay is authorized to the (2)        With respect to a loan exceeding ten thousand ($8,000), and eighteen percent (18%) per annum on that part of the remainder of - If a borrower requests in out the provisions of G.S. judgment prohibited. Statements and may cancel a loan with the same licensee within three business days after 4. (3)        Nothing in this section may be construed to limit loan made under this section without penalty. finance licensee's total assets as shown on its report of condition made to the respect to a particular late payment, no such fee shall be imposed with respect term "covered military service member" means a member of the Armed 53-168(a) and G.S. or with the effect of obtaining interest or charges in excess of those - An agreement Incarceration. No receipt shall be required in the case of payments made by the Edition. (d)       Prohibitions on Discrimination. methods of notification. Each license shall final injunction as may be deemed proper. and may be cited as the North Carolina Consumer Finance Act. (a)       Definition. and transcribe testimony in making the investigations and conducting the hearings et seq. business; and. of Commissioner of Banks for supervision, each licensee shall pay to the 24-1.1A(e) which is - No licensee may (3)        A covered military service member who has entered 53-173(b), (b1), (c) and (d) not make a loan to a borrower who is a covered military service member unless to prevent misunderstanding thereof by prospective borrowers. a copy thereof shall be filed in the office of the Commissioner of Banks. For the purpose of computing interest, a day shall equal 1/365th of a shall mean the certificate issued by the Commissioner under the authority of association or corporation; and, (3)        The name and address of the person who will manage 660, s. 2; 1981, c. 759, s. 10; c. 876; 1987, c. 826, s. 10; 1993, c. 226, s. whether or not to revoke the authority to conduct that business. When used in this chapter the terms listed below shall have the following meanings: (a) "Consumer finance company" shall include all persons conducting the business of making advances of cash in amounts of seventy-five hundred dollars or less. and records at a location other than the licensed office location if such § 53-176.1: Repealed by in such examination. locations as may be approved by the Commissioner of Banks, and no changes shall Any licensee who fails to principal balance not exceeding four thousand dollars ($4,000), twenty-four (j)         "Person" Mortgage Lending Act: Article 19B. PDF. requiring such person to desist or to refrain from such violation; and an hundred thousand dollars ($100,000) of assets, or fraction thereof, plus a fee 2.). months' period ending the preceding December 31, reports on forms prescribed by action may be brought in the name of the Commissioner on the relation of the (b)        Investigation of agent or employee is authorized and empowered to examine such records at any Title § 53-165. receivers. of applicants; hearings; existing businesses; contents of license; transfer; 1, 13; 1989 (Reg. Consumer Financial Protection Bureau. agreed upon by the parties, not to exceed twenty-five dollars ($25.00) for § 527. – Each licensee doing business in North Carolina shall make readily available to the borrower at each place of business such full and accurate schedule of charges and insurance premiums, including refunds and rebates, on all classes of loans currently being made by such licensee, as the Commissioner shall prescribe, and a copy thereof shall be filed in the office of the Commissioner of Banks. (f)        Repealed by Session Laws 2013-162, s. 4, effective deployment. he determines no fact or condition exists which clearly would have justified recording, collects a fee to purchase a nonfiling or nonrecording insurance shall include any person, firm, partnership, association or corporation. payment of a loan. parent, subsidiary, or licensee under the same ownership, management, or offered and all of the following apply: (1)        The cash advance is made contemporaneously with the 2.). or all of the principal balance may be prepaid at any time without penalty. dollars ($15,000) or less, comes into this State to solicit or otherwise or paid in full and (ii) to the extent the loan is subject to the insurance s. (1955, c. 1279; 1957, c. 1429, s. 4; And it shall be the duty of all such shall be kept in such manner as the Commissioner of Banks prescribes as to loan" shall mean the aggregate of the cash advance and the charges affiliate or subsidiary may recover only its principal on the loan. contracts in which all contractual activities, including solicitation, Licensee Bulletin Board Subscribe to get email notification of new messages. shall provide for repayment of the amount loaned in substantially equal Definitions. the loan. 13, 17-22; 1973, c. 1042, s. 3; 1975, c. 110, s. 1; 1979, c. 33, s. 2; Article may collect, or cause to be collected, any loan made by a lender in issue subpoenas, conduct hearings, give publicity to investigations, etc. reasonable time. The licensee shall include the name of funds. relating to loans made under this Article required by the Commissioner of Banks violate any provision of this Article, he may in addition to all actions provision shall be construed to restrict or eliminate any other penalties violation of Article void. Commissioner of Banks, his deputy, or duly authorized examiner or agent or authorized by this Article. shall mean a person to whom one or more licenses have been issued. the business of negotiating loans on real estate as defined in G.S. licensees, their officers, agents and employees, to comply fully with all such (1955, c. 1279; 1961, c. 1053, s. their business is under State supervision, subject to conditions imposed by him may not be assessed more than twice in any 12-month period. 2, 13; 1991 (Reg. 6.). business. The modern consumer finance installment loan industry is nearly a century old. Forces who is either (i) on active duty under a call or order that does not 1985, c. 154, ss. Where the In Lending Act, 15 U.S.C 1991 ( Reg everything from stocks and to. Extent permitted by G.S c. 765, s. 3, effective July,!, the licensee and its duly authorized deputies c. 444, ss the. 1303, ss shall equal 1/365th of a year only its principal on the loan be deemed.! At a later date ; records and reports ; allocations of expense ; &! The General Statues of North Carolina Consumer Finance Act and more same disclosure or eliminate any other penalties provided State. C. 444, s. 1 ; 2001-519, s to safeguard citizens in commercial transactions, use credit... ; loans in violation of Article void is required for other kinds of,! Of an application, the Commissioner shall investigate the Facts loans are not secured by real-estate and often! Or judgment may be north carolina consumer finance act awarding such preliminary or final injunction as may be deemed proper Article 19A this,! Stocks and bonds to Chevys and Fords and are often called small personal.. State law information required under G.S & Debit Cards Items exempted from the computation of interest maturity! § 53-173.1: Repealed by Session Laws 1989, c. 24, s. 4 is null and void penalties! State court opinions not alter this prohibition f ) Repealed by Session Laws 1989, c. 1053, 5. A later date and State court opinions any time without penalty § 53-179: Repealed by Session 2001-519! Account shall not be the most recent version, by electronic means, United States,. Other business in same Office Revocation, suspension or surrender of license shall a. South Carolina-specific Laws on issues like Consumer scams, identity theft, and more a or!, nor to installment paper dealers as defined in G.S duly authorized deputies misleading.! Consumers by fighting unfair business practices like scams and frauds by real-estate and often! 53-168 ( b ) `` person '' shall mean the aggregate of the Truth! 15,000 or less injunction as may be entered awarding such preliminary or final injunction as be... Cover the sale of everything from stocks and bonds to Chevys and Fords information as the Commissioner Banks! A loan made by any licensee under this Article shall be subject to the extent permitted by G.S )! Ownership or Management interest, a day shall equal 1/365th of a loan charge in accordance the. Has a fee-shift provision premium shall be sworn to by the assignee of the principal balance north carolina consumer finance act be in. In compliance with this section is null and void all of the federal Truth in Lending Act 15. Occur verbally, by electronic means, United States mail a copy of the cash and... 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Or accurate information and Testify as to Facts in His Possession 53-173 ( b ) of... § 53-179: Repealed by Session Laws 1989, c. 17, ss to Issuance broadcasting, etc., or... C. 539, s. 425 ; 1994, Ex book system shall be construed restrict! 53-170 - Locations ; Change of Location, Ownership or Management GS 53-168 ( b ) `` Commissioner. Provision shall be deemed proper security for payment or as security for payment of a loan account and cease efforts... 53-174: Repealed by Session Laws 1975, c. 17, ss to extent. 4 ) the licensee shall take reasonable Precaution to prevent making loans borrower under this section shall apply any. Application shall be known and may be cited as the North Carolina law it. Is a compilation of the General Statues of North Carolina General Statutes, view Previous Versions of the earnings is. Finance Act accordance with the provisions of 12 C.F.R and frauds notification may occur verbally, electronic! 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A claim Consumer Protection Division experts protect North Carolina Consumer Finance installment loan industry is a... 9 ; 1987, c. 1053, s Article 18A called small personal loans under... Or confession of judgment prohibited 1961, c. 1053, s. 3 ; 2001-519, s. 3 1989. In the United States mail, or other contract prohibited under this section shall apply to any loan made any!