NC H475

Requires lenders under the North Carolina Consumer Finance Act to obtain documentation from borrowers demonstrating reasonable likelihood of loan repayment before making a loan.

Prohibits borrowers from deferring payments or entering into new loan agreements to repay the original loan under the documented repayment terms.

Directs the Commissioner of Banks to adopt rules governing acceptable forms of documentation to verify borrower ability to repay.

Limits interest charges on new loans to 8% per annum when a borrower has an unpaid balance from a prior loan, regardless of whether the prior balance is incorporated into the new loan.

Effective date: October 1, 2015.