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Indicates Matter Stricken
Indicates New Matter
AMENDED
April 25, 2001
H. 3721
Introduced by Reps. Cato, J.E. Smith, Chellis, Knotts, Cooper, Bales, Hayes, Harvin, Tripp, Leach, Ott, Whatley, Edge, Hinson and Barfield
S. Printed 4/25/01--H.
Read the first time March 15, 2001.
TO AMEND SECTION 34-29-140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONSUMER FINANCING IN CONNECTION WITH LICENSING OF CONSUMER FINANCE COMPANIES, SO AS TO ALLOW A LICENSEE TO CHARGE A MINIMUM DELINQUENCY CHARGE OF TEN DOLLARS ON AN UNPAID INSTALLMENT AFTER TEN DAYS AND TO ADD A MAINTENANCE FEE OF THREE DOLLARS A MONTH TO THE GROSS AMOUNT OF THE PROMISSORY NOTE, IF THAT FEE IS REFUNDED PRO RATA UPON PREPAYMENT OF THE NOTE; TO AMEND SECTION 37-3-203, AS AMENDED, RELATING TO DELINQUENCY CHARGES IN CONNECTION WITH A CONSUMER LOAN OR REFINANCING OF A CONSUMER LOAN, SO AS TO PROVIDE FOR A MINIMUM DELINQUENCY CHARGE OF TEN DOLLARS ON AN INSTALLMENT THAT IS UNPAID TEN DAYS AFTER ITS DUE DATE AND TO ALLOW A CREDITOR TO APPLY PAYMENT TO A DELINQUENT RATHER THAN CURRENT OR UNMATURED INSTALLMENT; AND TO AMEND SECTION 37-5-108, AS AMENDED, RELATING TO REMEDIES AND PENALTIES IN CONNECTION WITH CONSUMER TRANSACTIONS, SO AS TO CLARIFY FACTORS FOR CONSIDERATION IN A DETERMINATION OF UNCONSCIONABLE CONDUCT.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 34-29-140(e) and (i) of the 1976 Code are amended to read:
"(e) Delinquent charge; penalties for excessive charges. In addition to the charges and fees provided for by this chapter, no further or other amount whatsoever shall may be directly or indirectly charged, contracted for, or received, directly or indirectly, except that a licensee hereunder may, if agreed to in writing, may contract for, impose, and collect a delinquent charge of five cents per dollar for each full dollar of an installment which that is delinquent for five ten or more days, which. The charge may be imposed only once on each delinquent installment and, provided where if a portion of an installment is delinquent, the delinquent charge may be imposed only once on that portion of the installment which that is delinquent. A lender may contract for and receive a minimum delinquency charge of five dollars, even if the charge exceeds five percent of the unpaid amount of the installment. However, such The restriction shall does not apply to official fees as defined in Section 37-1-301(10)(17), or actual and reasonable attorney fees as determined by the court in which suit is filed and court costs incurred in the collection in default, or to the actual and reasonable expenses of repossession, storing, and selling of any property pledged as security on any a contract in default, or insurance premiums or identifiable charges authorized by this chapter. If any an amount in excess of the charges permitted by this chapter is charged, contracted for, or received, except as the result of an accidental or bona fide error, the contract of loan shall be is void, and the licensee shall have has no right to collect or receive any principal, interest, charge, or recompense whatsoever; and. The licensee and the its several members, officers, directors, and agents thereof who shall have participated in such the violation shall be deemed are guilty of a misdemeanor and, upon conviction thereof, shall must be punishable by a fine of fined not more than five hundred and not less than two hundred dollars or by imprisonment for imprisoned not less than thirty days nor more than six months.
(i) In addition to all other charges authorized under by this section, a licensee may charge and add to the gross note a maintenance fee of one dollar per two dollars for each month for the term of the loan for each loan account which in the event of prepayment would. If the loan is prepaid, the maintenance fee must be refunded pro rata with the unexpired term of the loan and any a part of a month must be treated as like a full month."
SECTION 2. This act takes effect upon approval by the Governor.
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