Higher bank lending fees approved by North Carolina Senate
Updated 9:55 pm, Monday, June 11, 2018
RALEIGH, N.C. (AP) — North Carolina-based banks could charge higher lending fees than currently permitted in legislation that passed one General Assembly chamber.
The Senate voted overwhelmingly Monday night for loan origination and late fee increases originally sought by the state's banking industry.
The measure got bipartisan support after a floor amendment was approved to make potential increases not as steep on borrowers with loan principals under $1,500. For example, the maximum origination fee could be $100 for those loans, compared to $150 proposed earlier. The current maximum for these loan amounts is $50.
The bill sponsor says the fees haven't changed substantially since the early 1990s, and current origination fees make it difficult for North Carolina-chartered banks to cover the cost of making these loans.
The bill now returns to the House.