Bill > S0488

This bill amends South Carolina law to combat predatory lending practices by establishing two key mechanisms: first, it defines and prohibits unfair consumer loan practices, such as making loans without properly assessing a borrower's ability to repay, renewing loans excessively, or mailing unsolicited loan instruments. Specifically, lenders must conduct a detailed financial analysis of borrowers' income, expenses, and repayment capacity before issuing loans, and are restricted from renewing loans more than twice within 180 days or making new loans within 30 days of a previous loan. Second, the bill mandates the creation of a statewide database through the Consumer Finance Division of the Board of Financial Institutions to track loan transactions in real-time, preventing borrowers from exceeding loan refinancing limits. Lenders must submit detailed borrower information to this database before and after loan transactions, and the Board will be required to compile an annual report to the General Assembly detailing loan statistics such as loan amounts, fees, borrower frequency, and collection actions. The database must be operational by January 1, 2026, and the bill excludes state and federally chartered banks and credit unions from these requirements. Violations can be enforced by the Attorney General, and individuals can pursue legal remedies if subjected to prohibited practices.

Business and Industry

https://www.scstatehouse.gov/billsearch.php?billnumbers=0488&session=126&summary=B