RALEIGH, NC-- Gov. Pat McCrory is concerned about a bill that would allow a form of short-term borrowing to return to North Carolina a decade after the legislature outlawed payday loans.
McCrory spokeswoman Crystal Feldman said Wednesday the governor has objections to a Senate bill that would reinstitute a class of loans of up to $500 for which lenders could charge fees reaching $75. Industry representatives say the government-regulated loans provide a needed credit option for people with nowhere else to go.
Feldman says this and similar legislation don't align with McCrory's objective to lessen the financial burden of families. She says high-risk loans put families in danger of incurring debt.
Two key Senate Republicans are among the bill's primary sponsors. The payday lending industry has hired several lobbyists.