Installment Loans
A Safe and Responsible Way to Borrow.
Traditional installment loans are one of the oldest and most established forms of credit. These loans are a transparent, affordable, and disciplined way to borrow because the terms of the loan do not change during the course of the loan.
Unlike other forms of credit that may have balloon payments or changing terms, installment loans are easy to understand and even easier to manage. A fixed monthly payment, based on the individual borrower’s budget, ensures that both interest and principal will be repaid within a predefined time period, allowing the borrower a clear path out of debt.
In North Carolina, the installment loan industry is served in large part by local, privately owned businesses that have strong ties to the communities in which they operate.
Personal installment loans are a transparent, affordable and disciplined form of credit which helps consumers meet important economic needs. These loans help borrowers smooth out their household budgets and handle unexpected events like car repairs or medical expenses. An installment loan provides a properly structured and timely repayment schedule and helps consumers build good credit.
Consumer Protections
Traditional Installment Loans are Designed to Protect All Consumers
The underwriting process of a traditional installment loan in NC is designed to protect the consumer by ensuring that the individual borrower has a reasonable ability to repay the loan. This helps prevent consumers from becoming over extended with their debt obligations.
In order to obtain a traditional installment loan, a consumer must fill out a detailed credit application. The lender then carefully examines the borrower budget, looking at the applicant monthly income and any other obligations the consumer has. Many times, the lender and consumer sit down and discuss a monthly budget and whether or not the consumer can take on a new bill comfortably. At the loan closing, the terms of the loan are explained, allowing for the consumer to ask any questions and ensuring that the borrower is comfortable with the terms before signing the paperwork.
Protecting Military Families
Resident Lenders of North Carolina has a long-established and well documented history of protecting all North Carolina consumers by providing easy to understand installment credit options. Our commitment to service members is especially importnt given that North Carolina is home to the third largest military population in the United States.
The Military Lending Act of 2007 was designed to protect military families from predatory lending practices. In the bill, the Department of Defense specifically outlined traditional installment loans as a responsible credit option for military families.
In 2011, RLNC submitted comments to the Consumer Financial Protection Bureau (CFBP) regarding consumer financial products and services being offered to service members and their families: Read More
Links of Interest
The North Carolina Office of the Commissioner of Banks has a Consumer Finance Bulletin Board which periodically provides announcements related to training opportunities or other industry knowledge. Visit the Bulletin Board by clicking the link below. Be sure to click on the “Subscribe to get email notifications” link on the Bulletin Board page to be notified of future announcements.
North Carolina Commissioner of Banks