1999 - Consumer Home Loan Protection Provisions of Predatory Lending Act
Policy Name: Consumer Home Loan Protection Provisions of Predatory Lending Act
Date: Enacted in 1999; last revised in 2007
The North Carolina Predatory Lending Law established Article 10.2 of Chapter 24 of the North Carolina General Statutes. This article protects homeowners by prohibiting the predatory practice of loan flipping – the practice of refinancing a loan when that transaction provides no net benefit to the borrower. Predatory lenders rely on loan flipping to generate fees and strip equity from a borrower’s home.
Article 10.2 of Chapter 24 declares loan flipping as “usurious” in violation of Chapter 24 and unlawful as an unfair or deceptive act in violation of Chapter 75.