Bill 3522

                    Current Status

Bill Number:               3522
Ratification Number:       453
Act Number                 392
Introducing Body:          House
Subject:                   Consumer Finance Act

(A392, R453, H3522)

AN ACT TO AMEND SECTION 34-29-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, AS AMENDED, RELATING TO FINANCE CHARGES AUTHORIZED UNDER THE CONSUMER FINANCE ACT, SO AS TO INCREASE OR MODIFY CERTAIN CHARGES AND PROVIDE FOR A MONTHLY MAINTENANCE FEE.

Be it enacted by the General Assembly of the State of South Carolina:

Charges on loans permitted

Section 1. Item (2) of subsection (a) of Section 34-29-140 of the 1976 Code, as last amended by Act 686 of 1976, is further amended to read:

"(2) On loans with a cash advance exceeding one hundred fifty dollars but not exceeding one thousand dollars, twenty dollars per one hundred dollars on that portion of the cash advance not exceeding one hundred dollars; eighteen dollars per one hundred dollars on that portion of the cash advance exceeding one hundred dollars but not exceeding three hundred dollars; and eleven dollars per one hundred dollars on that portion of the cash advance exceeding three hundred dollars but not exceeding five hundred dollars and nine dollars per one hundred dollars on that portion of the cash advance exceeding five hundred dollars but not exceeding one thousand dollars, when the loan is made payable over a period of one year, and proportionately at those rates over a longer or shorter period of time.

In addition to the finance charges authorized in subparagraphs (1) and (2) of this subsection (a), a licensee under this chapter may contract for and receive an initial charge in such an amount as may be agreed upon in writing with the borrower, but not to exceed seven percent of the cash advance or twenty-eight dollars, whichever is the lesser, for the expenses, including but not limited to any attorney's fees and broker's fees, then or theretofore incurred and the services then or theretofore rendered by the lender incident to the loan or the security therefor, such as investigating the moral and financial standing of the borrower, investigating the security, title and similar investigations and for closing the loan, including any and all expenses incurred or services rendered at the request of the borrower or on his behalf in connection with the loan. Such initial charge shall not be contracted for and received on any renewal loan or other loan made to the same borrower more often than once in a three months period; provided, however, that upon any loan made to such borrower of a sum in excess of the amount on which such initial charge may have been charged within such three months period, then such initial charge may be contracted for and received on such excess. Such initial charge is a one-time charge, not a per annum charge, and shall not be subject to refund."

Fees

Section 2. Section 34-29-140 of the 1976 Code, as last amended by Act 137 of 1977, is further amended by adding subsection (i) which shall read:

"(i) In addition to all other charges authorized under this section a licensee may charge and add to the gross note a maintenance fee of one dollar per month for the term of the loan for each loan account which in the event of prepayment would be refunded prorata with the unexpired term of the loan and any part of a month treated as a full month."

Time effective

Section 3. This act shall take effect upon approval by the Governor.