CHARLOTTE, N.C. (WBTV) – as the U.S. government shutdown continues and federal workers face potential missed paychecks, demand for short-term loans is rising, prompting warnings from North Carolina officials about the dangers of illegal payday lending.
Payday loans, typically a short-term cash advance due on your next payday, are illegal in north Carolina.The North Carolina Department of Justice warns these loans can carry annual interest rates ranging from 390% to 780% on loans of $100 to $500, possibly trapping borrowers in a cycle of debt.
Despite their illegality, lenders are increasingly targeting North Carolina residents through online payday loans. The Department of Justice recommends alternatives such as small savings accounts, salary advances from employers, low-interest loans from credit unions, or credit card advances.
Consumers who believe they have been victimized by a payday lender are encouraged to file a complaint with the North Carolina Attorney general’s office at https://ncdoj.gov/file-a-complaint/consumer-complaint/ or by calling 1-877-566-7226.
The ongoing government shutdown, which began on [date from original article – not provided, so omitted], is impacting federal workers and driving increased financial hardship for some.
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