NC H508

Reduces the maximum monthly interest rate on open-end credit plans (including revolving credit cards and charge accounts) from 1.5% to 1.17% per month, lowering the effective annual rate from 18% to approximately 14%

Maintains existing consumer protections including the $24 annual charge cap, $2 monthly service charge option, and 25-day grace period for full payment without service charges

Preserves late payment charge limits at $5 for balances under $100 and $10 for balances of $100 or more, with charges not to exceed the outstanding principal balance

Requires lenders to provide 30 days' notice before imposing new annual or service charges on existing accounts, with cardholders entitled to prorated refunds if they cancel within 12 months

Becomes effective October 1, 2025, applying to interest, finance charges, and fees charged on or after that date