State Officials Question Alabama Bank's Loans
North Carolina officials are seeking answers from an Alabama-based bank that is offering payday loans in the state. Such short-term, high-interest loans are illegal in North Carolina. But Regions Bank, which has several branches here, is offering the loans online. Attorney General Roy Cooper says his office has written Regions Bank to see if any North Carolina customers have taken out the loans.
Roy Cooper: "It does complicate matters when you are offering a product over the internet. We still believe however that companies ought to honor North Carolina law, if not simply for the principle of the fact that this state has made the decision that these types of loans are not good for consumers."
The loans have an APR between 120 and 365 percent. A company spokeswoman said in a statement that the product is meant to meet the credit needs of existing customers in good standing.