Bill > S0379

This bill effectively phases out payday lending (known legally as "deferred presentment loans") in South Carolina through several key provisions. The Board of Financial Institutions will no longer issue new deferred presentment licenses as of the bill's effective date, and no new payday loans or loan renewals will be permitted after June 30, 2025. For existing loans outstanding after that date, lenders must offer customers an extended payment plan with at least four equal installments, charged without additional interest or fees, allowing customers to repay their balance in a more manageable way. Existing payday lending licensees can transition to being supervised lenders within the Nationwide Multistate Licensing System at no cost until December 31, 2025, after which all deferred presentment licenses will be revoked. On January 1, 2026, the entire legal chapter governing deferred presentment services (Chapter 39, Title 34) will be repealed, effectively eliminating the payday lending industry in the state. The bill takes effect upon the Governor's approval, providing a structured wind-down of payday lending operations that gives both lenders and borrowers a clear timeline for transition.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=0379&session=126&summary=B