Currently in the State of North Carolina, it is illegal to operate a payday loan service. Under state law, payday loans, cash advance loans, or short term loans are not legal. Businesses that operate within state borders are not allowed to offer this service.
From 1997 to 2001, North Carolina allowed this type of loan to be processed within the state. However, since 2001, when the initial law lapsed, state legislators have refused to renew the payday loan law.
At this time, payday loans in NC may be illegal by businesses operating within the state lines, but they are not illegal online. Online payday lenders have the ability to operate within the state lines of North Carolina if their company is not based within the state.
This is much like a credit card offer. People who live in North Carolina receive credit card offers from out of state banks all the time. In fact, people around the country continually receive these offers. It is completely legitimate for a bank based in Delaware to offer a credit card to someone in another state. The same rules are applied to cash advances online.
If the cash advance company has the legal authority to conduct a payday loan business, they can offer their services to residents of North Carolina without breaking any laws.
If you are a resident of North Carolina and need access to a payday loan, you will need to go online to find a lender. One of the first things that you should do when you are examining the different companies offering these loans is find out if they are allowed to offer loans in your state. Some lenders only target specific areas or regions of the country.
Once you have established that they offer loans in North Carolina, all you will need to do is follow their application process. Application requirements may differ from lender to lender as do the repayment terms. Make sure that you are familiar with all of this information before accepting a loan.