Senate Bill 162 Summary

• Modernizes origination fee structure for North Carolina banks on loans under $100,000 by establishing a tiered fee schedule ranging from $100 to $250 based on principal amount, replacing the previous one-quarter percent of outstanding balance or $50 standard.

• For loans of $100,000 or greater, caps origination fees at one-quarter of one percent (1/4 of 1%) of the principal amount.

• Adds 36% annual percentage rate cap for personal loans under $5,000 from natural persons, inclusive of all origination fees and interest charges.

• Modifies late payment charges to allow the greater of $35 or 4% of the past-due amount for non-real-property loans from North Carolina banks with original principal balances of $1,500 or more, and establishes payment due thresholds of 15 days (30 days for advance-interest loans) before late fees may be charged.

• Applies to contracts entered into, renewed, or modified on or after the April 1, 2019 effective date.