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North Carolina tried payday lending for a few years, then let the authorizing law expire after loans were found to trap borrowers in debt.
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Over half of borrowers' deposit accounts had at least one payment request that resulted in an overdraft or NSF fee.
The guarantor is someone that the individual knows like a family member, friend or colleague and this person typically has a good credit history and agrees to cover the cost of the loan if the borrower defaults on repayment.
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