Current Status Bill Number:121 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970114 Primary Sponsor:Passailaigue All Sponsors:Passailaigue Drafted Document Number:s-res\passaila\res1117.elp Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Default by consumer, procedure for creditor when repossessing goods; consumer affairs
Body Date Action Description Com Leg Involved
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Senate 19970114 Introduced, read first time, 02 SBI
referred to Committee
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TO AMEND SECTION 37-5-111, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CURE OF DEFAULT, SO AS TO PROVIDE PROCEDURES FOR CREDITORS TO FOLLOW WHEN REPOSSESSING GOODS THAT ARE SUBJECT TO AN INSTALLMENT CONTRACT UPON DEFAULT BY THE CONSUMER.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-5-111(1) of the 1976 Code is amended to read:
"(1) (a) With respect to a secured or unsecured consumer credit transaction payable in two or more installments, except as provided in subsection (2), after a default consisting only of the consumer's failure to make a required payment, a creditor, because of that default, may neither accelerate maturity of the unpaid balance of the obligation, nor may, at his option, either give the notice provided in Section 37-5-110 or take possession of or otherwise enforce a security interest in the goods that are collateral. A creditor who elects to give notice of default shall not take any further action to enforce a security interest in the collateral until twenty ten days after a notice of the consumer's right to cure (Section 37-5-110) is given. Until expiration of the minimum applicable period after the notice is given, the consumer may cure all defaults consisting of a failure to make the required payment by tendering the amount of all unpaid sums due at the time of the tender, without acceleration, plus any unpaid delinquency or deferral charges. Cure restores the consumer to his rights under the agreement as though the defaults had not occurred.
(b) Notwithstanding any other provision of law, if the creditor in a consumer credit transaction does not give the notice of default prescribed in Section 37-5-110, he shall retain the goods for fifteen days after the retaking within the state in which they were located when retaken. During the fifteen-day period of retention the consumer, upon payment or tender of the unaccelerated amount due under the contract at the time of retaking and interest, or upon performance or tender of performance of any other condition as may be named in the contract as precedent to the consumer's continued possession of the goods, or upon performance or tender of performance of any other promise for the breach of which the goods were retaken, and upon payment of the actual and reasonable expenses of any retaking and storing, may redeem the goods and become entitled to take possession of the same and to continue in the performance of the contract as if no default had occurred. The creditor shall within three days of the retaking furnish or mail by registered or certified mail, to the last known address of the consumer a written statement of the unaccelerated sum due under the contract and the actual and reasonable expense of any retaking and storing. Any creditor failing to furnish or mail the statement as required by this section forfeits the right to claim payment for the actual and reasonable expenses of retaking and storage and is liable for the actual damages suffered because of the failure. If the goods are perishable so that retention for fifteen days as herein prescribed would result in their destruction or substantial injury, the provisions of this subsection do not apply and the creditor may resell the goods immediately upon retaking."
SECTION 2. This act takes effect upon approval by the Governor.