HB810 Helps Stop Predatory and Offshore Lending for North Carolinians

Raleigh, North Carolina (I-Newswire) May 25, 2011 - Online PR News – 24-May-2011 – Raleigh, NC -- Say YES to House Bill 810 and Senate Bill 761—to help stop predatory and unregulated offshore lending for North Carolinians. That’s what many are saying and it’s become a hot topic in the legislature in Raleigh. Proponents of the bill feel that passing it will benefit NC. “Passing HB 810 is one of the key benefits of making sure the consumer installment lending industry remains strong in NC,” according to William Braxton, president of the NC independent lending organization, the RLNC. “And it is a bi-partisan issue,” Braxton feels, “which needs to be discussed in a civilized and honest way.”

“Truth has not been on the agenda lately—not if we look at the activities of the Center for Responsible Lending (CRL) and attempts to involve the military to stop payday lending in NC. There is no payday lending in NC. Payday lending is not involved in HB 810. It’s nonsense.”

“The CRL has directed the discussion to loan products prohibited here—not about HB 810 because the facts don’t support their agenda. They are creating distractions and confusion,” stated Braxton. “A level-headed look at HB 810 shows its benefits and what it offers our state.”

“We don’t want North Carolinians traveling over the border to get loans or going on the Internet. That leaves consumers subject to unregulated lenders. How is that good for consumers in NC? It is not. Right now the smaller dollar loans are not even available in NC. The industry can’t afford to offer them. Passing HB810 would help. We need this bill to pass in order to allow the highly regulated consumer loan industry to function effectively in this state.”

Those who reviewed HB 810 summarized its goals. Simply, it allows a small loan rate increase in NC—after a 28 year moratorium. It offers protections for North Carolinians from unsafe borrowing and undisciplined debt. In fact, HB 810 requests just a few dollars a month more than loans as they are now given. Braxton explains: “The dollar difference is minimal. Anyone who says differently is not honest or hasn’t looked at the facts.”

“This bill safeguards old-fashioned, one-on-one consumer loans in local neighborhoods. It protects the process of face-to-face loan applications, credit review, credit reporting and credit building.”

William Braxton further reported today that consumer installment lending is good for business in North Carolina. “It’s a fact that money from small dollar loans in North Carolina is spent in North Carolina.” In addition, he outlined the following points:

• Finance company loans are highest among those with incomes of $55,000—$75,000.

• These consumers are well-informed, employed North Carolinians.

• Finance company customers surveyed by UNC for the NCCOB were very satisfied with consumer installment loan products they received.

• Finance company customers rated the consumer installment company loans highest in satisfaction, and second only to bank loans in terms of perceived fairness.

Braxton further outlined the benefits for North Carolina if HB 810 is passed:

• Hundreds of thousands of North Carolinians use this safe and responsible service every year to achieve family goals, pay for education, handle home repairs, and much more.

• A small percentage of military personnel stationed in NC also count on these loans to assist them when needed, or in achieving important goals like building credit so that they can buy homes or for other purposes like education, auto repair, etc.

When asked why he feels the industry has such a high customer satisfaction rate, William Braxton indicated that, “The consumer installment loan industry only succeeds when loans are satisfactorily paid back. It’s a win-win for consumers and the industry—and makes for happy customers. The process of giving these loans includes a one-on-one review of budgets and a conversation to create loans that can be paid back in a reasonable fashion.”

Based on their recent activity in Raleigh, the CRL appears to want to discuss issues that are not in this new bill—calling for legislators to stop payday lending and loans that would put the military in harm’s way. The military spokespeople also mentioned loan offices right outside the military bases, again a reference to payday lending offices of old, which do not exist in North Carolina. Braxton explained: “We need to stick to the truth and the real issues. In fact, this is a bi-partisan bill—one that can benefit North Carolina borrowers by keeping safe credit available.”

North Carolina has been a leader in the nation regarding safe and affordable small dollar loans. Braxton spoke on this issue: “We should not allow political agendas to deny North Carolinians access to much needed credit in an effort to get national attention for other political causes in a case of political jockeying. The facts speak for themselves.”

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About RLNC:
The RLNC Inc. is the industry association, representing the privately held installment finance companies that operate in North Carolina. The RLNC is comprised of over 90% of the state's licensed consumer lenders. The owners of these companies live in communities across North Carolina--and therefore are known as the "resident" lenders of NC.

Company Contact Information
RLNC
William Braxton
175 Jonestown Rd
Winston Salem, NC
27105
Phone : 336-269-0908