Loan Options in North Carolina

Payday loans

Payday loans are illegal in North Carolina. The state let its payday-lending authorization expire in 2001 and never renewed it. Any company offering you a payday loan-storefront or online-is breaking the law under N.C. General Statutes Chapter 53, Article 15. The NCCOB actively investigates lenders that try to offer payday products to North Carolina residents.

Installment loans

Installment loans are legal if the lender holds a license under the North Carolina Consumer Finance Act (N.C.G.S. § 53-164 et seq.). Licensed companies can offer longer-term loans with scheduled payments, but they must follow state rate caps and other requirements. For details on what you can expect to pay, see the North Carolina installment loans and rates & fees pages.

Where to start

If you've been contacted by an unlicensed online lender or you'd rather avoid a high-cost loan, check out alternatives available in North Carolina.

North Carolina's lending laws give you several real protections:

• Payday lending ban. Because payday loans are illegal here, you won't get trapped in the short-term debt cycles that borrowers face in other states. If someone offers you a payday loan anyway, you can report them to the NCCOB.
• Licensing requirement for consumer finance companies. Any lender offering installment loans must hold an NCCOB license. That means the state can examine their records, enforce rate caps, and pull their license if they break the rules. Verify a lender's license on the NCCOB website before you apply.
• Interest-rate caps on licensed loans. Licensed lenders can't charge whatever they want-the Consumer Finance Act sets maximum rates. The rates & fees page explains the specific caps.
• Complaint and enforcement process. If something feels wrong, file a complaint with the NCCOB. They accept complaints about both licensed and unlicensed lenders and can take enforcement action.

Before you share personal or financial information with any lender, review the LendUp scams & safety guide and confirm the company's license through the NCCOB lookup above.