On May 29, the U.S. District Court for the Middle District of North Carolina denied a motion to dismiss an action filed against several finance companies accused of violating North Carolina’s consumer protection laws. The plaintiffs alleged the finance companies charged usurious interest rates on car title loans by exceeding limits set by the North Carolina Consumer Finance Act. In failing to disclose the unlawful terms, the plaintiffs also claimed the actions constituted unfair and deceptive trade practices under state law.

The finance companies argued the court lacked personal jurisdiction because they did not maintain contacts with North Carolina in connection with any of the plaintiffs’ claims. The court rejected that argument, finding the plaintiffs had demonstrated personal jurisdiction over the defendants since they advertised and conducted business with North Carolina residents through various media — despite not having any physical presence in the state. The court specifically highlighted how defendants’ use of modern technology, including radio, television and the internet, evidenced an intent to do business with North Carolina residents.

The court also rejected the defendants’ alternative request to transfer venue, relying on the plaintiffs’ choice of forum and the relationship of the case to North Carolina. The court concluded that splitting the case across multiple jurisdictions would be inefficient and burdensome for the plaintiffs.