South Carolina legislators passed payday loan reform that went into effect at the start of January 2010. These reforms raised the amount a resident could borrow to $550 and also created a statewide database. This database is mandatory for all lenders and tracks the amount of loans borrowers have taken out in the state, so as to ensure no borrower takes out more than $550 in total payday loans. Below are the new state regulations that have gone into effect.
Here are some specific South Carolina regulations, to protect consumers from predatory lending in the payday loan industry:
- Maximum Payday Loan Term
- Maximum Finance Charges and Fees
15% of the loan amount
- Maximum Loan Amount
- Number of Rollovers
- Outstanding Loans Allowed at Once
- Cool-Off Period
- Payment Plan
Mandatory payment plans for individuals who cannot afford to repay their loan; lenders must factor in borrower's ability to repay
- Collection Fees
$10 NSF fee
- Presentment Limit
- Private Right of Action
Civil and criminal charges for fraudulent checks
- Military Protection
Arbitration, attorney fees, and all loan costs including late fees
As of January 2013, no further legislative mandates governing the cash advance industry in South Carolina have been passed.
South Carolina Statute 34-39-110 et seq.
South Carolina State Board of Financial Institutions
1205 Pendleton Street, Suite 305
Columbia, SC 29201