A BILL TO BE ENTITLED
AN ACT to modernize north carolina's revolving credit charges in order to level the playing field with out‑of‑state businesses.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 24‑11 reads as rewritten:
"§ 24‑11.  Certain revolving credit charges.
(a)	On the extension of credit under an open‑end credit or similar plan (including revolving credit card plans and revolving charge accounts, but excluding any loan made directly by a lender under a check loan, check credit, or other similar plan) under which no service charge shall be imposed upon the consumer or debtor if the account is paid in full within 25 days from the billing date, but upon which there may be imposed an annual charge not to exceed twenty‑four dollars ($24.00), there may be charged and collected interest, finance charges, or other fees at a rate in the aggregate not to exceed one and five‑sixths percent (1.833%) per month computed on the unpaid portion of the balance of the previous month less payments or credit within the billing cycle or the average daily balance outstanding during the current billing period.
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(b)	On revolving credit loans (including check loans, check credit, or other revolving credit plans whereby a bank, banking institution, or other lending agency makes direct loans to a borrower), if agreed to in writing by the borrower, the lender may collect interest and service charges by application of a monthly periodic rate computed on the average daily balance outstanding during the billing period. The rate shall not exceed one and five‑sixths percent (1.833%).
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(d1)	A lender may charge a party to a loan or extension of credit governed by this section a late payment charge not to exceed five dollars ($5.00) on accounts having an outstanding balance of less than one hundred dollars ($100.00) and twenty‑five dollars ($25.00) on accounts having an outstanding balance of one hundred dollars ($100.00) or more, for any payment past due for 30 days or more; provided, in no case shall the late charge exceed the outstanding principal balance. If a late payment charge has been once imposed with respect to a late payment, no late charge shall be imposed with respect to any future payment which would have been timely and sufficient but for the previous default.
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SECTION 2.  This act is effective when it becomes law and applies to charges imposed on or after that date.