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South Carolina Payday Loans Work For Short Term Cash Needs

South Carolina State Map
South Carolina State Map
For the South Carolina payday loans industry the state does have specific payday loan laws to help consumers in their endeavor to acquire payday loans in the state of South Carolina. As things stand now the maximum amount of money they can be borrowed on a payday loan in South Carolina is 550 dollars. The allowable fee on a loan is 15% in face amount of the payday loan, and rollovers are prohibited. These are but a few of the parameter set in place by house bill (54-4-36).

A licensee may defer the presentment or deposit of a check for up to thirty-one days pursuant to the provisions of this section, also the total amount advanced by a licensee to any customer at one time for a payday loan may not exceed five hundred fifty dollars, A licensee may not advance to a customer an amount for a payday loan which causes this limit to be exceeded by the customer. Each check must be documented by a written agreement signed by both the customer and the licensee. The written agreement must contain the name or trade name of the licensee, the transaction date, the amount of the check, and a statement of the total amount of fees charged, expressed both as a dollar amount and as an effective annual percentage rate (APR). The written agreement must authorize expressly the licensee to defer presentment or deposit of the check until a specific date, not later than thirty-one days from the date the check is accepted by the licensee.

South Carolina State Flag
South Carolina State Flag
The law also requires that the board shall require each licensee to issue a standardized consumer notification and disclosure form in compliance with state and federal truth-in-lending laws before entering into a deferred presentment agreement. In addition a licensee shall not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the principal amount of the transaction for accepting a check for deferred presentment or deposit. The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be imposed only once for each written agreement. A check accepted for a payday loan pursuant to this chapter may not be repaid from the proceeds of another check accepted for a payday loan by the same licensee or an affiliate of the licensee. A licensee shall not renew or otherwise extend presentment of a check or withhold the check from deposit, for old or new consideration, for a period beyond the time set forth in the written agreement with the customer. If a check is returned to the licensee from a payer financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the check except for the imposition of a returned check charge. An individual who issues a personal check to a licensee under a deferred presentment agreement is not subject to criminal liability.

In an effort to better monitor the behavior of the South Carolina Payday Loans community the state has established that a database be put in place to better accomplish this task, for the wellbeing of the citizens of the state. In order to prevent a person from having a payday loan transaction that exceeds the limit in Section 34-39-180(B) and Section 34-39-270(A), the Consumer Finance Division of the Board of Financial Institutions shall implement a common database with real-time access through an internet connection for payday loan providers, as provided in this subsection. 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 payday loan providers to meet the requirements of this chapter and verify if a payday loan transaction is outstanding for a particular person.

South Carolina payday loans
South Carolina payday loans
South Carolina Payday loans providers shall submit the person's data to the database provider before entering into a payday loan transaction and once a payday loan transaction has been paid in full, in a format the board requires by regulation, including the drawer's name, social security number, or employment authorization alien number, address, driver's license number, amount of the transaction, date of transaction, the date that the transaction is closed, and additional information required by the board. The database provider may impose the database verification fee authorized by Section 34-39-270(H) for data required to be submitted by a licensee. The board may adopt procedures to administer and enforce the provisions of this section and to ensure that the database is used by licensees in accordance with this section.

The information provided in the database is limited for the use in determining if a customer is eligible or ineligible to enter into a new payday loan transaction and to describe the reason for the determination of eligibility or ineligibility. This is the sole intended purpose at a base and it is in no way intended for use as an instrument to spy on the personal finances of the citizenry. The state is putting forth a concerted effort to not only protect the people of the state of South Carolina, they are also working to maintain level of integrity in the South Carolina payday loans industry so that it can better serve people of the state. It appears that the legislators of the state are sensitive to the needs of the people and that they realize that payday loans are a very important part of the financial fabric of the state, and that these industry helps many thousands of people to stay on track with their personal finances.