Payday Loan in South Carolina
Legal Status: Legal
Citation:
S.C. Code Ann. 34-39-110 et seq.
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15%
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Lesser of: NSF fee of $10 or actual charge
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: South Carolina State Board of Financial Institutions
Address: Consumer Finance Division, P.O. Box 11905 Columbia SC 29211
Phone: (803) 734-2020
Fax: (803) 734-2025
Applicability: To a transaction pursuant to a written agreement which in exchange for a fee involves accepting a check dated on the date it was written and holding it for a period of time before presentment for payment/deposit. Otherwise, consumer finance law applies. S.C. Code Ann. ยง 34-29-140 ($2.50 per month on loans of up to $150; $25 per $100 on loans of $100- $600; $18 per $100 on loans of $600-$1,000; $12 per $100 on loans of $1,000-$2,000; add-on)
Exemptions: Bank, savings institution, credit union, or farm credit system organized under the laws of the U.S. or any state; a person engaged in the retail sale of goods or services who from time to time cashes checks, drafts, or money orders without a fee.
Licensing requirements: State Board of Financial Institutions enforces. Must submit application, pay an application fee of $250 and an investigative fee of $500. Must be renewed annually. Must show a minimum net worth of at least $25,000 for the operation of each location and must show financial responsibility, character, experience, and general fitness.
Permitted charges: Not more than 15% of face amount of the check and can be imposed only once. Returned check charge not to exceed the lesser of $10 or the fee imposed by the financial institution.
Loan terms: May defer presentment of the check for no more than 31 days. Face amount of a check may not exceed $300 exclusive fee allowable fees.
Prohibited acts: A check accepted for deferred presentment may not be repaid from the proceeds of another check accepted for deferred presentment by the same licensee or an affiliate. Also cannot renew or otherwise extend presentment for a period beyond the time set forth in the written agreement. Cannot pursue criminal charges for bad checks, only civil remedies. Cannot engage in unfair, deceptive, or fraudulent practices, including unconscionable conduct. Cannot accept an undated or postdated check.
Required disclosures: Must conspicuously post the license and a notice stating the fee charged for services and shall file the statement of fees with the board. Must have a written agreement signed by both the customer and licensee which includes a statement of the total amount of fees charged, expressed both as a dollar amount and as an APR, and must expressly authorize deferment of the check until a specific date. Must also give state and federal truth-in-lending disclosure form before consummation.
Enforcement: Can suspend or revoke the license or issue a cease or desist order.
Penalties: Can impose a fine of up to $2,000 per violation. Failure to obtain a license is a misdemeanor.
