NC H223

Modernizes loan origination fees for North Carolina banks by establishing a tiered structure based on principal amount: loans of $100,000 or greater may charge 1/4 of 1% of principal, while loans under $100,000 have fixed fees ranging from $100 to $250 depending on loan size.

Adds a 36% annual percentage rate (APR) cap for small personal loans under $5,000 to natural persons, inclusive of all origination fees and interest charges.

Revises late payment charge rules to allow the greater of $35 or 4% for qualifying unsecured loans from North Carolina banks with original principal balances of $1,500 or more, while maintaining 4% caps for other loan types.

Clarifies that late payment charges cannot be imposed until payment is 15 days past due (or 30 days for loans with advance interest payments) and establishes a 45-day notification requirement for lenders to inform borrowers of late charges.

Applies the bill to contracts entered into, renewed, or modified on or after the effective date.