Installment Loan Hikes Headed To Gov. Pat McCrory

A bill raising interest rates and borrowing limits on installment loans in North Carolina is headed to Gov. Pat McCrory's desk for a final signature.

The state Senate on Monday approved changes to the bill made by the House to soften interest rate increases. The bill increases the maximum loan amount, allows consumers to defer payments at a cost and adds late-payment fees.

Changes to lower interest rate hikes were enough to get two watchdog groups to change their stances on the bill to neutral. State Attorney General Roy Cooper and the AARP remain opposed.

Backers of the bill argued it's a matter of consumer choice for people with few options. Opponents argue installment loans encourage endless cycles of debt among lower-income people.