NC Loan Biz Tries Military Changes To Win Support

Companies that issue installment loans in North Carolina are lobbying anew to raise borrowing costs for many of their customers.

The House narrowly passed a bill in 2011 that would have allowed consumer finance lenders to collect more on loans. It died when lawmakers and military leaders feared it would hurt young service members naive about seeking credit.

This year the industry has worked with the military to place more restrictions on the loans for low-ranked sailors, soldiers and Marines.

The state's consumer finance lenders say interest rates and borrowing amounts haven't changed in 30 years, making it hard to earn a profit.

Bill opponent Chris Kukla with the Center for Responsible Lending says the restrictions for the military show proposed rule changes could hurt other borrowers, too.