Current Status Introducing Body:House Bill Number:5135 Primary Sponsor:Meacham Committee Number:30 Type of Legislation:GB Subject:Finance charges, consumer and supervised loans Residing Body:House Current Committee:Ways and Means Computer Document Number:GJK/20792SD.94 Introduced Date:19940414 Last History Body:House Last History Date:19940414 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Meacham Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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5135 House 19940414 Introduced, read first time, 30
referred to Committee
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TO AMEND SECTION 37-3-201, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FINANCE CHARGES AUTHORIZED IN CONNECTION WITH CONSUMER LOANS MADE BY A LENDER WHO IS NOT A SUPERVISED LENDER, SO AS TO REDUCE FROM EIGHTEEN PERCENT PER YEAR TO TWELVE PERCENT PER YEAR THE MAXIMUM FINANCE CHARGES PERMITTED; AND TO AMEND SECTIONS 37-3-501 AND 37-3-511, RELATING TO SUPERVISED LOANS, SO AS TO CONFORM THE CITATIONS TO FINANCE CHARGES TO THE CHANGES MADE IN SECTION 37-3-201.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-3-201(1) of the 1976 Code is amended to read:
"(1) With respect to a consumer loan, including a loan pursuant to open-end credit, a lender who is not a supervised lender may contract for and receive a finance charge, calculated according to the actuarial method, not exceeding eighteen twelve percent per year. With respect to a consumer loan made pursuant to open-end credit, the finance charge shall be deemed not to exceed eighteen twelve percent per year if the finance charge contracted for and received does not exceed a charge for each monthly billing cycle which is one and one-half percent of the average daily balance of the open-end account in the billing cycle for which the charge is made. The average daily balance of the open-end account is the sum of the amount unpaid each day during that cycle divided by the number of days in the cycle. The amount unpaid on a day is determined by adding to any balance unpaid as of the beginning of that day all purchases, loans, and other debits and deducting all payments and other credits made or received as of that day. If the billing cycle is not monthly, the finance charge shall be deemed not to exceed eighteen twelve percent per year if the finance charge contracted for and received does not exceed a percentage which bears the same relation to one and one-half percent as the number of days in the billing cycle bears to three hundred sixty-five divided by twelve. A billing cycle is monthly if the closing date of the cycle is the same date each month or does not vary by more than four days from the regular date."
SECTION 2. Section 37-3-501(1) of the 1976 Code is amended to read:
"(1) `Supervised loan' means a consumer loan in which the rate of the loan finance charge exceeds eighteen twelve percent per year as determined according to the provisions on the loan finance charge for consumer loans (Section 37-3-201)."
SECTION 3. Section 37-3-511 of the 1976 Code is amended to read:
"Section 37-3-511. Supervised loans, in which the rate of loan finance charge exceeds eighteen twelve percent per annum, not made pursuant to a revolving loan account, in which the principal is one thousand dollars or less, shall must be scheduled to be payable in substantially equal installments at equal periodic intervals except to the extent that the schedule of payments is adjusted to the seasonal or irregular income of the debtor, and:
(a) over a period of not more than thirty-seven months if the principal is more than three hundred dollars,; or
(b) over a period of not more than twenty-five months if the principal is three hundred dollars or less."
SECTION 4. This act takes effect upon approval by the Governor.