South Carolina Payday Loan
The Law requires that every payday loan lender operating in South Carolina should have a valid license. The state laws also protect the interest of the lender by giving them the option to take legal action against borrowers if their check is not cleared due to reasons like insufficient funds, closed account or due to a stop payment instruction by the borrower. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. According to the law, a South Carolina payday loan lender may lend a maximum amount of $300 and he can charge a maximum interest of 15%, which comes to a total of $17.65 for a $100 loan including charges and interest. The period for loan should be more than 31 days. When you combine all the charges, the APR comes to 459% which is slightly higher even when we take into account the fact that it is a payday loan. Payday loan lenders can also charge a collection fee which can be the actual charge or a $10 NSF charge, whichever is lower. South Carolina law prohibits extensions or rollovers, but there is no cap on the number of times a South Carolina payday can be taken concurrently. South Carolina Payday lending business has grown rapidly over last few years. The state stands 9th among all states if we count the payday loan lenders in every state. There were 902 lending locations in the state at the time of this study. The state statistics show that companies gave more than 4.1 million loans, up 57 percent from 2000. The number of payday loan lenders in the state also increased to 700 over five years. The South Carolina State Board of Financial Institutions in Columbia handles all complaints about South Carolina payday loans.
