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my dh got a payday loan online in aug. anyway, his check goes direct deposit and i withdrew funds to pay other bills from the account not knowing about the pay day loan, so it didn't get paid. we have 2 checking accounts. okay, we received an email from his employer regarding the loan due that they sent to his employer threatening to garnish his wages. so when dh got paid the next month they garnished his wages. is this lawful? they said something about a wage assignment or something, i really don't know but he didn't get a written notice from his employer other than the email. we did owe the debt and they have been fully paid, but i was just wondering was it legal. i did research on sonic payday and most people complained. sonic wouldn't even make payment arrangements and their central office is in canada or somewhere, I don't know.

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Sorry E. Normis but you are incorrect they are NOT legal in the state..

A company can operate as a consumer finance center which but can not make a payday loan against a check.. you can be a lender but making a payday loan is NOT legal in the state...

March 9, 2006

North Carolina has extracted agreements from additional lenders to stop making payday loans, which are illegal in the state. State Attorney General Roy Cooper said the agreements mean that payday lending practices by all major companies operating in the state have now ended.

"We've fought payday lending at every turn and we're putting this industry out of business here in North Carolina," Cooper said.

"These payday lenders thought that they had found a way around North Carolina law. Now we're showing them the way out of our state," he said.

So-called "payday" loans are targeted at low income consumers, often struggling to make ends meet. Cooper says the lenders took advantage of their desperate circumstances to saddle them with outrageous terms.

For example, consumers who took out a typical payday loan of $300 from one of the three companies were required to repay the loan within two weeks, plus around $60 in interest. That amounts to an annual percentage rate of 400 percent.

Consumers who couldn't repay the loan at the end of two weeks were required to take out another payday loan to repay the first.

Under the consent agreements, Check Into Cash, Check �n Go and First American Cash Advance will stop making payday and other unauthorized loans in North Carolina.

Cooper said the companies will not only stop collecting interest and other fees on existing loans, but will pay a total of $700,000 to find efforts to help consumers adversely impacted by payday loans.

The money will go to several non-profit groups that provide credit counseling and financial literacy training.

Cooper said two of the firms plan to close down operations in North Carolina and leave the state, while the third will try to get a license as a consumer finance lender that operates under state rules.

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and what bothers me in this case is, typically wage assignments have to go through a judicial process. Why they get to automatically go to that (and them being payday loan outfits) is beyond me!


which is one of the reasons I am sure they are slowly being snuffed out like roaches.. I for one am glad they are gone.. from here anyway

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Please provide the relevant statutes.

Here is the link to Roy coopers press release.. (our AG)


On March 1, 2006, the North Carolina Department of Justice announced the state had negotiated agreements with all the payday lenders operating in the state. The state contended that the practice of funding payday loans through banks chartered in other states illegally circumvents North Carolina law. Under the terms of the agreements, the lenders will stop making new loans, will collect only principal on existing loans and will pay $700,000 to non-profit organizations for relief.

In short these loans WERE never legal according to our usary laws.. the former AG let them roll through for a trail expired period... that is no longer possible.

This may not be a "statute but I am not going to take the time to dig through it..to prove my point...it frankly is not necessary...

I live in this state, I do read and pick up a paper I have an idea of what is going on... they are NOT legal.. read the article above and there are plenty more like it.. . .. feel free to research it to your hearts content.

I didnt just make this up for fun.. .. if you dont believe me check with the AG here yourself.. I had this chat with david evers last month while dealing with an SOL case... we TALKED about these loans (I dont have one but we were discussing why they were out of state)..

I am not an idiot.. I dont make up quotes nor do I make up stories and post them here... ... this time I am tired, crabby and probably saying too much.. but if YOU can find information to the contrary let me know.. Payday loans are NOT legal here... .. those people may appeal the decision but as of now there are NONE of these places in the state and the loans that are made here are NOT payday... if they were those people would still be in business.. and believe me they have been fighting tooth and nail to stay here.. it is also illegal in I believe at least a dozen other states as well.

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practice of funding payday loans through banks chartered in other states illegally circumvents North Carolina law.

That is the relevant portion of your clipping.

The payday loan lenders being discussed were themselves not chartered banks, they claimed to be "agents" of the bank.

Providing the payday lender is chartered as a bank in NC, it can do whatever payday lenders typically due, including charging interest rates of its home state rather than that of NC.

Payday lenders don't want to be "banks" because they then have to operate under federal banking laws, including regulation by the FDIC. So in this case they simply chose to pack up and move.

Payday loans are legal in NC, providing the lender complies with the states banking laws. As your own news article shows, the "lenders" involved were attempting to circumvent those laws.

Hope this helps.

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