North Carolina Payday Loans

The consumer finance act applies. N.C. Gen. Stat. 53-173
Status: Prohibited (N.C. Gen. Stat. 53-281 authorizing payday loans allowed to sunset in 2001)

North Carolina does not allow payday lending, although recently efforts have been made to fight that decision. According to the Charlotte Post, North Carolina first adopted payday lending in 1999 after legislators became convinced the loan types were not good for the state. Attempting to answer this, some larger payday lenders partnered with out-of-state banks as a legal way to circumvent the law, but the state eventually ruled this practice unlawful as well. There have been no payday loans available in North Carolina since 2006.

In 2016, the Post reported the federal Consumer Financial Protection Bureau had considered rules to rein in on payday lending abuses from unscrupulous companies. If a North Carolina resident finds a local business that offers payday loans, they should know the business is doing so illegally.

What is a payday loan?

In general terms, a payday loan is a short-term loan type designed to be distributed and repaid quickly. The loan works best when a borrower has a specific financial amount in mind and a plan to repay it within the typical two-week repayment period. These loans are known for their high interest rates, universal freedom of fund usage, and the relatively simple application requirements. To apply for payday loans in states where they are legal, a potential borrower needs to be over the age of 18, be a U.S. citizen, and have access to a bank account. Cash advance loans do not require any collateral from the borrower to apply, and the borrower’s credit history and debt level do not come into play during the application process.

An ideal usage of the funds would be to address some unexpected financial emergency that could, under normal circumstances, be covered by a potential borrower’s usual paycheck. Say a power bill is due on Tuesday but a borrower won’t get paid until Friday. A payday loan would give them the option to keep the lights on Wednesday while paying back the loan on Friday. Unfortunately, cash advance loans can also lead to greater financial difficulty if the borrower does not use the funds as planned and becomes delinquent in repaying the lender. This can lead to what is known as a debt cycle, wherein a borrower is forced to take out more loans to pay off the old ones and gets hit with fees and charges for the delinquency. It is therefore advised that any potential borrower consider all financial options before committing to a loan and understanding all the loan terms of service before accepting the funds.

Other Loan Options

Depending on a potential borrower’s options, they can apply for traditional loans with a bank, borrow from friends or family, or search for a lending company online. This last option is not currently prohibited by North Carolina’s payday lending laws, thus allowing a potential borrower to consider loan options outside the state. Such action does not violate North Carolina law due to similar business practices employed by credit card companies, wherein a bank operating in Alabama can grant a loan to a person in North Carolina if they choose to do so.

One of the draws of online loan searches can be the variety offered to a borrower. Rather than accept the terms offered by a lender down the street, a borrower can shop around for the best loan available to them. However, the borrower should remember that accepting any loan burdens them with the responsibility of paying back the funds as soon as possible.

Lending Rules*

Lenders in the state of North Carolina are legally required to comply by the following limitations according to The consumer finance act applies. N.C. Gen. Stat. 53-173:

Small Loan Rate Cap:
36% per year
*The information displayed may not be current. For the most recent information, please visit

Regulatory Information

If you have a complaint against a North Carolina Cash Advance location you can contact your state regulator below:

North Carolina Attorney General (See also Commissioner of Banks)
NC Attorney General's Office 9001 Mail Service Center Raleigh NC 27699-9001
(919) 716-6400
(919) 716-6750

North Carolina Check Cashers

Below you can find North Carolina check cashers in the following cities:

North Carolina Statistics**

The following information is key demographic data for the state of North Carolina from the Census bureau.

Total Population:
Median Household Income:
Poverty Rate:
Median Gross Rent:
High School Graduate or Higher:
Bachelor's Degree or Higher:
**The information displayed may not be current. For the most recent information, please visit

Borrow Responsibly

Given the chaotic and unexpected events that happen in life, a potential borrower in a bad financial situation may feel pressured to find a solution quickly. In those instances, the borrower should take the time to step back and consider all financial options available to them.

Short-term loans work best when a borrower has a plan ready before they apply. And even with the possible pressures at play in these situations, the responsibility of the loan will ultimately fall to the borrower. Remember that short-term loans cannot be used for long-term financial plans and have to be paid back. Doing so will help a borrower maintain focus should they decide to consider a loan. is an independent comparison service provider. Reasonable efforts have been made to maintain accurate information throughout our website; however, all information is presented without warranty or guarantee. may receive compensation from our partners, including, but not limited to, clicking on links and lead generation.