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STOP THE PAYDAY LOAN DEBT TRAP! AGAINST SENATE BILL 947
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Payday lending has been banned in North Carolina
since 2001. Senate
Bill 947 (SB 947), supported by the payday industry, would
once again legalize the payday loan debt trap in North Carolina. SB 947 would
allow unlimited flipping of payday loans, 500% APR loans,
and loopholes that would enable payday lenders to ignore North Carolina
law as well as federal regulations. Payday loans are short-term loans that
borrowers take out against their next paychecks.
They have been widely condemned for their sky-high
interest rates, which can range from 400 to upwards of
1,000 percent. Studies
have documented payday lending’s addictive nature and
destructive effects on individuals and communities. You can take action today against this deeply
flawed bill. Send a letter via e-mail to the N.C. Senate
Commerce Committee, where the bill is under consideration.
Just follow the below directions.
Let the committee leadership know that for the good
of 1. Below is a
sample form letter. Copy
this text into your e-mail.
4. Include the
following subject line - "Attention:
Please Oppose SB 947". click to print 8 1/2" X 11" poster click to print sample form letter
SAMPLE
FORM LETTER:
Sen. David Hoyle, Vice Chairman Sen. Tony Rand, Vice Chairman N.C.
Senate Commerce Committee E-mail:
rcsoles@ncleg.net, davidh@ncleg.net, tonyr@ncleg.net Attention:
Please Oppose SB 947, which legalizes
the payday loan debt trap
Dear Senators Soles,
Hoyle & Rand: I am writing to urge
you to oppose Senate Bill 947 (SB 947), supported by the
payday industry, which would once again legalize the
now-outlawed payday loan debt trap in North Carolina.
This is the same deeply flawed bill the General
Assembly has rejected for the past 4 years.
SB 947 would allow unlimited flipping of payday
loans, 500% APR loans, and loopholes that would enable
payday lenders to ignore Picture
what life in our state would be like under SB 947: - There will be at least 2 1/2 times as many payday shops as now, going back to 2001 levels. - Families living paycheck to paycheck will be in crisis every two weeks, with $116 million in predatory payday fees being stripped from their bi-weekly paychecks to cover perpetual interest on triple digit interest rate loans. -
Children in these families will see 400% loans as the
norm, not realizing everyone else is paying a maximum of
36% APR (interest) on credit card advances and small
unsecured consumer loans from responsible lenders. Why
should the working poor have to pay 1000 to 1500% more
interest then you and me?
Picture this instead: - The NC General Assembly takes a strong stand to protect NC's working poor, voting NO on SB 947, then -
Passes a bill authorizing a small, short term loan product
that does not trap borrowers. The
average NC payday borrower is flipped 13 times, staying in
payday loans for 7 months of the year, and paying $885 to
borrow $255. The
addictive nature of payday lending and its destructive
effects on communities have been confirmed by NC state
regulators, several independent studies, the FDIC,
and even payday lenders’ own company data. In
addition, new studies show payday lenders target
African-Americans as well as our military.
African-American neighborhoods have three times as many
payday shops as white neighborhoods, even when controlling
for income. Payday lenders clearly target military
families by locating in base communities, as shown by a
recent study of bases in twenty states. Please oppose SB 947, which legalizes the payday loan debt trap. Sincerely, |
