Payday loans in North Carolina
Payday loans are illegal in North Carolina because the deferred deposit law expired, check cashers cannot lend, and only licensed Consumer Finance Act installment loans allow small loans above the general usury rate.
- Payday lending
- Banned
- Max cost
- None in the law
- Top amount
- None allowed
Are payday loans legal in North Carolina?
North Carolina bans payday loans; the North Carolina Consumer Finance Act permits only licensed installment loans. You get between 12 and 96 months to repay up to $25,000 with these loans. A lender may charge yearly interest of at most 33 percent on the first $4,000 for loans up to $12,000. Between $4,000 and $8,000, the cap falls to 24 percent. The rest carries an 18 percent limit. Loans over $12,000 have an 18 percent cap, while the processing fee for loans up to $3,000 cannot exceed $30.
Check cashers cannot make loans or give credit. Also, North Carolina will not enforce out-of-state loans of $25,000 or less that charge higher rates. The lender cannot collect, receive, or keep your borrowed funds or any charges because any loan breaking this law is void. The North Carolina Office of the Commissioner of Banks publishes a consumer finance company list you can use to see whether a lender is licensed.
- The payday (deferred deposit) statute in North Carolina, G.S. 53-281, is no longer in force; the code marks it 'Expired' and nothing else.
- Because licensed check cashers cannot issue loans or extend credit, the path to payday lending via check cashing is closed.
- G.S. An out-of-state over-rate loan contract at or below $25,000 is unenforceable in North Carolina under G.S. 53-190 if any step occurred inside the state.
- The Governor's veto did not stop Session Law 2023-61 (Senate Bill 331), which became law in June 2023 and began applying October 1, 2023. Under it, the top installment rate tier moved up to 33% from 30%, while the tiered-loan ceiling grew to $12,000 from $10,000.
- During May 2019 the Attorney General obtained a restraining order against Approved Financial, an unlicensed online lender. Its rates were roughly 120 to 200 percent; the order barred loans to North Carolinians and collections from them.
- During December 2018 the Attorney General signed on to an amicus brief in the lawsuit Williams v. Big Picture Loans; the argument was that lenders who claim tribal immunity must prove they really are an arm of the tribe.
North Carolina payday loan laws
- Law in force
- The North Carolina Consumer Finance Act (Article 15 of G.S. Chapter 53) and the Check Cashing Act (Article 22)
- Cited as
- N.C. Gen. Stat. 24-1.1, 53-166, 53-176, 53-190, 53-283 and the expired 53-281
- Fees under the law
- Licensed installment loans carry thirty-three percent (33%) a year on the part of the unpaid principal balance up to four thousand dollars ($4,000). No payday product is authorised.
- How long a loan runs
- 12 months to 96 months (installment loans under the Consumer Finance Act)
- Installment lending limits
- Consumer Finance Act (G.S. 53-176): for loans up to $12,000, yearly interest is 33% on the first $4,000, then 24% on the part between $4,000 and $8,000, then 18% on the rest. Loans above $12,000, up to $25,000, pay 18%. A processing fee may add up to $30 on loans to $3,000, or 1% with a $150 cap
Also checked against ncleg.gov. Full statute text.
Online lenders that list North Carolina
Nine companies we track say they lend in North Carolina: 3 online installment lenders, 5 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in North Carolina
Any loan violating the Consumer Finance Act counts as void in North Carolina, which also will not enforce over-rate loans up to $25,000 made from outside the state to its residents. The Attorney General has sued an online payday lender without a license and argued against payday lenders' claims of tribal immunity.
On the immunity claim tribal lenders make, see are tribal loans legal.
Five tribal lenders we track list North Carolina as a state they lend in. Two of the five publish an APR, from 99% to 725%.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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North Carolina and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| North Carolina | Banned | None in the law | None allowed |
| Georgia | Banned | None in the law | None allowed |
| South Carolina | Allowed | $15.00 per $100 borrowed | $550 |
| Tennessee | Allowed | $15.00 per $100 borrowed | The total face value for outstanding checks is $500. |
| Virginia | Only as installments | None in the law | $2,500 |
North Carolina loans with no credit check
Installment loan rates: Consumer Finance Act (G.S. 53-176): for loans up to $12,000, yearly interest is 33% on the first $4,000, then 24% on the part between $4,000 and $8,000, then 18% on the rest. Loans above $12,000, up to $25,000, pay 18%. A processing fee may add up to $30 on loans to $3,000, or 1% with a $150 cap.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in North Carolina
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the North Carolina Office of the Commissioner of Banks (NCCOB).
- Had trouble with a lender? Report the lender.
Sources for North Carolina
- Within the Check Cashing Act, the deferred deposit (payday) section is now expired.; Extending credit or making loans is prohibited for check cashers.ncleg.gov
- To lend $25,000 or less with charges above Chapter 24 rates, you must have a licence.; Any loan breaking the Consumer Finance Act is void, so no one may collect anything from it.; North Carolina will not enforce out-of-state loans of $25,000 or less that charge rates above the legal limit.ncleg.net
- Consumer Finance Act installment loans last from 12 to 96 months and cannot exceed $25,000.; The highest rate tier is 33% yearly on the first $4,000 of any loan up to $12,000.; A cap of 18% a year applies to loans over $12,000.ncleg.gov
- The general usury rule caps a loan of $25,000 or less at the rate in G.S. 24-1.1(c).ncleg.gov
- Consumer finance lenders making loans of $25,000 or less get licensed and regulated by NCCOB.nccob.nc.gov
- An online form lets you send complaints to NCCOB about companies it regulates.nccob.nc.gov
- Lists of other licensees and licensed consumer finance companies are published by NCCOB.nccob.nc.gov
- Over the Governor's veto, SL 2023-61 (Senate Bill 331) passed and was chaptered June 27, 2023.ncleg.gov
- SL 2023-61 started on October 1, 2023.; SL 2023-61 made a change (struck and underlined text) where 33% on loans to $12,000 replaced 30% on loans to $10,000.ncleg.gov
- In May 2019 the AG secured a restraining order targeting an online payday lender.; This unlicensed lender charged interest between 120 and 200 percent.ncdoj.gov
- In December 2018 the AG submitted an amicus brief opposing payday lenders who use tribes to bypass state law.; According to the brief, the lender must prove it serves as a legitimate arm of the tribe.ncdoj.gov