Current Status Bill Number:4610 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980211 Primary Sponsor:Kirsh All Sponsors:Kirsh, Gamble and Law Drafted Document Number:psd\7174mm.98 Companion Bill Number:996 Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Consumer loans, loan finance charges, supervised lender rates, rate schedule, creditors, Consumer Affairs, dollar amount
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19980211 Introduced, read first time, 26 HLCI
referred to Committee
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TO AMEND SECTION 37-1-109, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE CHANGE OF DOLLAR AMOUNTS USED IN THE CONSUMER PROTECTION CODE, SO AS TO INCLUDE THE AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES AS AN AMOUNT THAT MUST BE ADJUSTED IN ACCORDANCE WITH THIS SECTION; TO AMEND SECTION 37-3-201, AS AMENDED, RELATING TO LOAN FINANCE CHARGES FOR SUPERVISED LENDERS, SO AS TO INCREASE THE DOLLAR AMOUNT AT WHICH SUPERVISED LENDERS MUST LEND AT RESTRICTED LENDER RATES FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS; AND TO AMEND SECTION 37-3-305, AS AMENDED, RELATING TO THE MAXIMUM RATE SCHEDULE FILED AND POSTED BY CREDITORS, SO AS TO INCREASE THE DOLLAR AMOUNT FOR WHICH SUPERVISED LENDERS MAY NOT POST A RATE EXCEEDING THE MAXIMUM CHARGES FOR RESTRICTED LENDERS FROM SIX HUNDRED DOLLARS TO EIGHT HUNDRED DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 37-1-109(6) of the 1976 Code is amended to read:
"(6) The dollar amounts in the following sections of this title are subject to change in accordance with this section: 37-2-104(1)(e), 37-2-106(1)(b), 37-3-201(2), 37-2-203(1), 37-2-407(1), 37-2-705 (1)(a) and (b), 37-3-104(1)(d), 37-3-203(1), 37-3-305(9), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3), and (4)."
SECTION 2. Section 37-3-201(2) of the 1976 Code, as last amended by Act 135 of 1995, is further amended to read:
"(2) With respect to a consumer loan, including a loan pursuant to open-end credit, a supervised lender may contract for and receive a loan finance charge as provided:
(a) on loans with a cash advance not exceeding six hundred eight hundred dollars, a maximum charge not exceeding the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate, provided that a supervised lender may impose a finance charge at a rate less than provided in Section 34-29-140, and provided further that the maximum charge shall not exceed the rate posted and filed pursuant to Section 37-3-305;
(b) on loans with a cash advance exceeding six hundred eight hundred dollars, and on all loans, regardless of the dollar amount, made by Supervised Financial Organizations, any rate filed and posted pursuant to Section 37-3-305; or
(c) on loans of any amount, if the rate is not filed and posted pursuant to Section 37-3-305, eighteen percent per year on the unpaid balances of principal."
SECTION 3. Section 37-3-305(9) of the 1976 Code, as added by Act 135 of 1995, is amended to read:
"(9) On loans with a cash advance [Section 37-1-303(30)] not exceeding six hundred eight hundred dollars, a licensed lender may not post a rate which exceeds the maximum charges imposed in Section 34-29-140 as disclosed as an annual percentage rate or that rate filed and posted pursuant to this section, whichever is less."
SECTION 4. This act takes effect upon approval by the Governor.