The Importance of Protecting Consumers' Continuing Access to Safe, Responsible, and Disciplined Small-dollar Installment Loans in North Carolina.

Online, January 10, 2011 (Newswire.com) - Burlington, NC - With consumers facing uncertain economic times, it is vital that households have access to safe, responsible, and disciplined consumer credit.

This week, members of North Carolina's licensed and regulated small-dollar installment loan offices met to discuss how best to protect borrowers' continued access to responsible small-dollar installment loans and how best to ensure its availability for the future.

"North Carolina's small-dollar installment loans have always provided the safe and affordable loan option for consumers and we feel that it is critical to work towards protecting their access to that credit," said William Braxton, current president of the state-based lenders' association. "Not only is it important to consumers, it is also very important to our state's economy."

During this past year, a joint legislative study commission of the North Carolina Assembly heard from industry members the challenges in meeting small-dollar credit demands while operating under the current statute-which has not been revised since 1983.

The joint legislative committee then directed that the North Carolina Commissioner of Banks take an in depth look into the industry to speak to both consumer protections and business profitability. That review and recommendation is to be forwarded to the new legislature this month.

"There has been a recognition that costs have risen significantly since 1983, yet there has been no adjustments to the blended rates that were set at that time" said Royce Everett, President of Time Financing, one of the North Carolina's larger, state based, family owned lending companies. "I can't imagine any business that can operate effectively today with 1983 prices."

For the past five years, North Carolina has seen a steady decline in traditional consumer finance offices, which has reduced the overall availability of small-dollar installment loans in this state.

Experts have attributed this decline to the high operating expenses associated with consumer finance offices and the 1983 pricing schedule.

"North Carolina's small-dollar installment loans provide a disciplined option for consumers faced with financial needs. Serious consideration needs to be given to this issue," said William Braxton.

FOR INFORMATION, CONTACT: Erin Wagner, RLNC Executive Committee [336-794-3833, [email protected]]