Abstract

Center researchers, at the request of and in cooperation with the N.C. Commissioner of Banks, conducted a comprehensive study and analysis of North Carolina's Consumer Finance industry, which makes closed-end, fixed-rate installment consumer loans. The Commissioner of Banks undertook this research at the request of a legislative study commission considering changes to the Consumer Finance Act that regulates this industry.

The study concluded that the law appears to adequately protect the estimated 6 percent of North Carolina consumers using direct consumer installment loans while enabling the industry to operate profitably.