Date Published: May 24, 2006   

N.C. banking commission upholds ruling against S.C. payday lender

The Associated Press

The North Carolina Banking Commission rejected an appeal Wednesday from South Carolina-based Advance America, agreeing that the company violated check cashing and consumer finance laws by charging annual interest rates exceeding 400 percent.

The commission's vote upheld a December decision by Banking Commissioner Joseph Smith to shut down Advance America, which had 117 payday lending offices in the state. State law caps the interest on small loans at 36 percent.

After the commissioner's ruling, three other payday lenders agreed with the state attorney general to stop offering the quick-cash loans.

"We on the Banking Commission are working to ensure that the people of North Carolina are treated fairly and honestly," said state Treasurer Richard Moore, who is chairman of the commission.

"Today's vote is another victory for consumers, as well as another step forward in our efforts to make sure lending institutions follow the letter of the law."

Based in Spartanburg, S.C., Advance America operates about 2,600 outlets.