Consumer Law In the News

New SC Bill Would Limit Payday Loans to $500

In what I can only call a mild effort to limit the damage wreaked on South Carolina lives by payday lenders, the South Carolina General Assembly is apparently considering action to limit payday loans to $500 or 20% of the borrower’s annual income, whichever is less. The suggested legislation would also require lenders to offer more disclosures to consumers, and to check a database of loans to ensure the cap is not violated.

Supporters are quick to point out they’re not banning the industry - as neighboring states Georgia and North Carolina effectively do. My only response to that: why the heck not?

I think we’ve seen more than enough evidence of the overwhelming evil these kinds of loans do to SC families. The cap is strange, too - most payday lenders start at $300 and cap at either $500 or $1000. Sure, it’s a start, but why the mollycoddling of this predatory industry? We don’t provide caps for drug pushers and their product; as damaging as drugs are to a person’s health, that’s how damaging payday loans are to a consumer’s finances.

For more information, see this article from The Sun News.

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