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Newletter

South Carolina Law

NOTE/DISLCAIMER: The answers to the following questions concerning the new Payday Loan laws in the state of South Carolina represent our understanding of the regulations and may or may not be how the law is interpreted by the state regulators.

Q: What is the new law concerning payday loans?

A: Click on link to view full text of bill - http://www.scstatehouse.gov/sess118_2009-2010/bills/3301.htm

Q: How does it affect me?

A: In general, the new law takes the decision of how much and when you can borrow from a payday lender away from you. The legislature of the State of SC has decided that that you do not need more that $550.00 at any given time, and requires that you pay an outstanding loan back and wait for at least a day before allowing you to enter into another payday loan. If you feel that your right to make financial decisions for yourself has been taken away from you, please take the time to call your state representative and let him or her know how you feel.

Q: Will I be able to write on the same day the loan is paid off?

SECTION 2. "Section 34-39-270.

(A) A licensee may not enter into a deferred presentment transaction with a person:

who has an outstanding deferred presentment transaction;
who has repaid a previous deferred presentment transaction with any licensee on the same business day;
who has repaid a previous deferred presentment transaction with any licensee on the same business day or the previous business day if the transaction being requested would be the customer's eighth or more transaction within a calendar year.

(B) No eighth or subsequent deferred presentment transaction within a calendar year may be entered into on the same or subsequent business day of the repayment of the previous deferred presentment transaction.

A: No. You will be able to rewrite on the next day after you have paid off your previous loan up to seven times in a calendar year. On the eighth time (as determined by the government) you will be required to wait until the second (2nd) day after you have paid off your previous loan to rewrite.

Q: Can I have two (2) loans out at the same time?

SECTION 2. "Section 34-39-270.

(A) A licensee may not enter into a deferred presentment transaction with a person:

who has an outstanding deferred presentment transaction;

A: You can only have one (1) loan out at a time.

Q: When does the law take effect?

SECTION 1. Section 34-39-270(A): The board shall enter into a contract with a single source private vendor to develop and operate the database. By no later than February 1, 2010, the database must be accessible to the board and the deferred presentment providers to meet the requirements of this chapter and verify if a deferred presentment transaction is outstanding for a particular person.

A: The law took effect immediately except for the portions that depend upon the state's database being operational. Those portions will go into effect at that time, which is legislated to occur no later than February 1, 2010.

Q: How much will I be able to borrow?

SECTION 4. Section 34-39-180(B): The total amount advanced by a licensee to any customer at one time for deferred presentment or deposit may not exceed five hundred fifty dollars, exclusive of the fees allowed in Section 34-39-180(E)

A: The law limits a customer to being able to borrow up to $550.00

"Those who are willing to trade their freedom for security will end up with neither."