Tag: South Carolina payday loans


Payday Loan Law – South Carolina Payday Loan State Data Base

South Carolina has turned down an appeal protesting its previous decision to award a contract to Veritec Solutions for the establishment of an online database system for tracking payday loans applied for by residents of South Carolina.

The South Carolina chief procurement officer for the Information Technology Management Office, Mike Spicer, denied the protest by the Prism Group and the Tom Sawyer Group. The companies have 10 days to file an appeal.

The two South Carolina companies protested the award to Veritec claiming the award was arbitrary, erroneous, and in violation of state law, along with allegations the award made was not the best for the state of South Carolina.

Veritec already maintains several other payday loan state data bases. They proposed a fee based system that may collect up to $15 million over five years. The Prism Group and Tom Sawyer Company proposed a system that could collect $8 million over the same period.

The payday loan data base system is required under new South Carolina payday lending rules passed earlier this year.


Payday Loan Industry South Carolina Laws

The South Carolina House passed new payday loan legislation with the help of  House Speaker pro tem Harry Cato who expressed his support of “fair regulation.”  Finally, a tempered, well thought out approach to the payday loan industry!
Associate Press reports that the bill was approved by the South Carolina House with a 93-16 vote. Consumers will benefit in that the bill allows them to have one loan at a time for up to $600. In addition, an online database (provided by Veritec) that will be operational by February 1, 2010 will record when loans are made. Payday loan lenders will be required to check this database each time a consumer applies for a loan. Customers who are approved will also have the option of an extended payment plan if they are unable to pay within the standard two week’s time.

Another part of the bill limits customers to 10 successive payday loans. After that, they must wait until at least one payday has passed before they can apply for another.

Of course, Payday loan critics don’t feel these requirements are strong enough but there are substantial studies that refute this erroneous thinking.

However, more thoughtful proponents of financial choice for consumers, Speaker Bobby Harrell for example was quoted as saying:

Regulating the practice and enacting consumer safeguards is the right thing to do. These loans are meant to be short-term financial solutions for unforeseen expenses; capping the loan amount and creating a statewide database to ensure that someone can only have one loan at a time will help prevent individuals from falling into a bottomless cycle of debt.

We applaud Speaker Harrelland Speaker pro tem Harry Cato for their insight and understanding that everyone needs access to small, temporary loans for emergencies!


Payday Loan Laws – South Carolina Legislation

South Carolina legislators introduced new payday loan legislation that will protect consumers from the so-called “cycle of debt” and allow thousands of payday loan employees and entrepreneurs to remain in business.

The bills sponsors introduced payday loan legislation that permits consumers to take out no more than one payday loan at a time for up to $600 dollars and enroll lenders in a state database before granting loans. Lender fees would be used to set up and operate the database, which would instantly report when loans are made. The database would track consumers and make sure they don’t have more than one loan at a time. Lenders are allowed to charge $15 for every $100 borrowed for the loans that have to be repaid in two weeks. For people that can’t pay loans on time, lenders will be able create payment plans that aren’t allowed under current law.

We applaud the direction the legislators of South Carolina are headed. It protects consumers from the few payday loan operators who abuse them. It allows the payday loan product to exist. And the commercial property owners can continue to lease their locations to payday loan companies in South Carolina.

Consumers by the millions use payday loans in Canada, the U.S.A., Australia, New Zealand, Korea, Barbados, the Bahamas, and the United Kingdom every year. There is no doubt that demand by consumers for the payday  loan product exists. The Legislators and regulators must find a way to meet the needs of consumers and protect them from abuse by the few operators that exist in every industry including banks, credit card companies, loan modification companies, etc.