N.C. Attorney General Roy Cooper has signed on to a letter to U.S. Congress leaders protesting a bill that would preempt state laws limiting payday lending and predatory financial practices.
The bill would allow companies that serve the "underbanked" to receive a federal charter, and thus be able to skirt state regulations. Advocates say they will let these underserved people access more financial products that traditional banks can't or won't offer them.
But many states, including North Carolina, have enacted tougher laws regulating services to the underbanked, and North Carolina has an outright ban on payday loans.
Forty other state attorneys general have signed the letter as well.
“States are on the front lines of consumer protection. We hear daily from consumers about the problems they face and can react more quickly than Washington to put new protections in place when needed,” Cooper said in a statement. “It makes no sense for Congress to undermine our ability to protect people here in North Carolina.”
Monday, October 8, 2012
AG Cooper joins protest of federal payday lending bill
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I am sure that there should be definite regulations for payday lenders because there are lots of lending providers who charge hidden fees and sky-high interest rates. But I believe that there are lenders who provide quality and reliable service. Almost third part of Americans do not have any savings and that’s why they use payday loans in case of financial emergency. If used wisely this service really can help to get quick cash, fix a financial problem and pay off the loan quickly. Also I think that it’s not right to blame only payday lenders online because customers also should think if they will be able to pay off their loans and if the interest rates are okay for them. No one is forced to take out expensive loans, if you have any doubts then you can always choose another option.
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