South Carolina Payday Loans

South Carolina is one of the 37 states that have specific statutes that allow for payday lending or deferred presentment, which features single-payment, short-term loans based on personal checks held for future deposit or on electronic access to personal checking accounts. Payday loans are regulated by Title 37, Chapter 3 of the South Carolina Code of Laws, which applies to consumer loans including supervised loans and restricted loans.

A consumer loan is a loan made by a person regularly engaged in the business of making loans in which the debtor is a person other than an organization, the debt is incurred primarily for a personal, family, or household purpose, either the debt is payable in installments or a loan finance charge is made, and either the principal does not exceed twenty-five thousand dollars or the debt is secured by an interest in land. A consumer loan does not include a loan secured by a first lien or equivalent security interest in real estate, unless the loan is made subject to this title by agreement.

A supervised loan is a consumer loan in which the rate of the loan finance charge exceeds twelve percent per year as determined according to the provisions on the loan finance charge for consumer loans. A supervised lender is a person authorized to make supervised loans. A restricted loan is a consumer loan in which the rate of the loan finance charge exceeds eighteen percent per year as determined according to the provisions on the loan finance charge for consumer loans. A restricted lender is a person authorized to make restricted loans.

According to Section 37-3-201 of the South Carolina Code of Laws, a supervised lender may charge an amount not exceeding fifteen dollars per one hundred dollars advanced for cash advances that do not exceed six hundred dollars. The maximum term of a cash advance is thirty-one days. The minimum term of a cash advance is one day for each ten dollars advanced. A supervised lender may not charge, collect, or receive in connection with a cash advance any other fee or charge of any nature except for dishonored check fees and court costs.

According to Section 37-3-413 of the South Carolina Code of Laws, a short-term vehicle secured loan is a consumer loan that: (a) has an original repayment term of not more than one hundred twenty days; (b) has an original principal amount that does not exceed six hundred dollars; (c) has an annual percentage rate that does not exceed three hundred sixty percent; and (d) is secured by a vehicle title. A short-term vehicle secured lender may charge an origination fee not exceeding fifteen percent of the principal amount advanced. The origination fee must be fully earned at origination and nonrefundable. A short-term vehicle secured lender may also charge interest at a rate not exceeding two and one-half percent per month on the outstanding principal balance.

According to Section 37-3-501 of the South Carolina Code of Laws, no person may engage in the business of: (a) making supervised loans without first obtaining a license from the administrator; (b) making restricted loans without first obtaining a license from the administrator; or (c) making deferred presentment transactions without first obtaining a license from the administrator. The administrator may issue licenses upon payment of an application fee and an investigation fee for each place of business. The administrator may also conduct examinations and investigations to determine whether any person has violated any provision of this chapter.

According to Section 37-3-602 of the South Carolina Code of Laws, if there is no agreement between the parties with respect to prepayment charges on consumer loans payable in installments and precomputed as provided in Section 37-3-202(1), then upon prepayment in full by cash, renewal or refinancing or otherwise before maturity date, there shall be refunded to the debtor: (a) with respect to interest-bearing loans, all interest which would otherwise be earned after prepayment; and (b) with respect to precomputed loans: (i) all interest computed at an annual percentage rate pursuant to Section 37-3-109(1)(a) which would otherwise be earned after prepayment; and (ii) all other charges which would otherwise be earned after prepayment.

According to Section 37-3-801 of the South Carolina Code of Laws, every creditor shall deliver or mail to the debtor without request a written statement showing: (a) with respect to interest-bearing consumer credit sales or consumer loans payable in install