South Carolina’s payday lending landscape has seen change in the past few years. Lawmakers in the state passed reform meant to curb abusive borrowing from residents and implement a statewide database to monitor lending activity. Since the reforms went into place, the amount of lenders in the state went from approximately 1,200 to about 700, dramatically reducing cash advances. Part of the reason for this drop was the loan amount cap that was put in place. Residents can borrow up to $550, up from the previous $300, but they can only take out one loan at a time and cannot roll over any balances.
Operating a payday lending business can be very expensive. When lawmakers place restrictive caps on the loan process, they run the risk of pushing lenders out of the state, as they can no longer afford the overhead costs of running a business. There have been some benefits of the reforms. Borrowers must now be offered a repayment plan if they cannot afford to pay off their loans, and lenders must consider the borrower’s income when structuring a repayment plan.
South Carolina State Board of Financial Institutions
1205 Pendleton Street, Suite 305
Columbia, SC 29201
Phone: (803) 734-2001
Fax: (803) 734-2013