A BILL TO BE ENTITLED
AN ACT to lower the cap on credit card interest and to make technical changes.
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 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 seventeen hundredths percent (1.17%) 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.
(a1)	If the lender chooses not to impose an annual charge under this section, the lender may impose a service charge not to exceed two dollars ($2.00) per month on the balance of any account that is not paid in full within 25 days from the billing date.
(a2)	No person, firm, or corporation shall charge a discount or fee in excess of six percent (6%) of the principal amount of the accounts acquired from or through any vendors or others providing services that participate in the plan.
(b)	On revolving credit loans (including check loans, check credit, or other revolving credit plans by which 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 at a rate not to exceed one and one‑half percent (11/2%).
(c)	An extension of credit under an open‑end or similar plan under which there is charged a monthly periodic rate greater than one and one‑quarter percent (11/4%) shall not be secured by real or personal property or any other thing of value. This subsection, however, does not apply to consumer credit sales regulated by Chapter 25A ("Retail Installment Sales Act") of the General Statutes. In an action initiated for the possession of property in which a security interest has been taken, a judgment for the possession of the property shall be restricted to commercial units (as defined in G.S. 25‑2‑105(6)) for which the cash price was one hundred dollars ($100.00) or more.
(d)	In this section, the term "billing date" means any date selected by the creditor. The bill for the balance of the account shall be mailed to the customer at least 14 days prior to the date specified in the statement as being the date by which payment of the new balance shall be made in order to avoid the imposition of any finance charge.
(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 ten dollars ($10.00) on accounts having an outstanding balance of one hundred dollars ($100.00) or more, for any payment past due for 30 days or more. 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 that would have been timely and sufficient but for the previous default.
(e)	An annual or service charge pursuant to this section upon an existing credit card account upon which the charge has not previously been imposed shall not be imposed unless the lender has given the cardholder at least 30 days' notice of the proposed charge and has advised the cardholder of the cardholder's right not to accept the new charge. This notice shall be bold and conspicuous and shall be on the face of the periodic billing statement or on a separate statement that is clearly noted on the face of the periodic billing statement provided to the cardholder. If the cardholder does not accept the new charge upon an existing credit card account, the lender may require that the cardholder make no further use of the account beyond the 30‑day period in order to avoid paying the annual charge, but the cardholder is entitled to pay off any remaining balance according to the terms of the credit agreement. Nothing in this subsection limits the lender from decreasing any rates or fees to the cardholder. If a cardholder within 12 months of the initial imposition of an annual charge rescinds the cardholder's credit card contract and surrenders all cards issued under the contract to the lender, the cardholder is entitled to a prorated refund of the annual fee previously charged, credited to the cardholder's credit card account."
SECTION 2.  This act becomes effective October 1, 2025, and applies to interest, finance charges, and fees charged on or after that date.