House Passes Payday Lending Bill

The South Carolina House of Representatives passed a Payday Lending bill (H. 3301) today that puts regulations in place to help safeguard consumers utilizing this lending service. With over 70 co-sponsors on the bill, the legislation passed the House with strong bipartisan support.

House Speaker Bobby Harrell who is the lead sponsor on the legislation said, “While there are some people who wanted to see us ban this industry or regulate it out of existence, clearly there is a demand from consumers for this particular service.”

The bill places a $600 cap on the amount lenders can loan to one individual at a time. Currently, there is no limit on the amount someone may be loaned and individuals can obtain multiple loans at the same time by simply going to different payday loan offices. Creating a statewide loan database will ensure that individuals only hold one loan at a time, no matter how many payday loan offices they may visit.

“Regulating the practice and enacting consumer safeguards is the right thing to do,” Speaker Harrell continued. “These loans are meant to be short-term financial solutions for unforeseen expenses; capping the loan amount and creating a statewide database to ensure that someone can only have one loan at a time will help prevent individuals from falling into a bottomless cycle of debt.”

The bill also moves to outlaw the predatory practice of unlicensed internet payday loans in South Carolina and establishes an extended payment plan for individuals who are unable to meet their loan.