NC S681

Authorizes licensed lenders to offer alternative rate installment loans between $300 and $1,500 with terms of 6 to 24 months, without charging interest.

Permits lenders to charge a nonrefundable 10% investigation fee on the loan amount, plus monthly installment handling fees of $5 per $100 financed (for loans up to $500) or $4 per $100 (for loans exceeding $500).

Restricts borrowers from having more than one alternative loan under this section outstanding simultaneously with the same lender or its affiliates, though lenders may still make standard loans under existing law.

Grants borrowers the right to rescind loans within three business days and recover all fees paid, including the investigation fee, provided they return the principal and any recording fees.

Allows prepayment without penalties and requires lenders to rebate unused installment handling charges on early payoffs calculated on an actuarial basis, with an effective date of July 1, 2015.