Shops that offer short-term, small-dollar loans with annual percentage rates of 300 and 400 percent do not cluster on urban street corners in North Carolina like they do in other states. That's because this is one of just four states where payday lending is prohibited.
But now a small regional bank - Regions Bank - has found a loophole. Two loopholes, really.
"Were they not a bank, it would not be legal to make that loan here in the state," says Chris Kukla, a senior vice president at the Center for Responsible Lending.