Bill 3933

                    Current Status

Bill Number:               3933
Ratification Number:       183
Act Number                 119
Introducing Body:          House
Subject:                   Credit service charge for consumer credit
                           sales

(A119, R183, H3933)

AN ACT TO AMEND SECTIONS 37-2-201, 37-3-201, AND 37-3-305, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CREDIT SERVICE AND LOAN FINANCE CHARGES AND FILING FEES, SO AS TO PROVIDE THAT A LENDER WHO HAS FILED RATES BUT HAS NOT POSTED THEM MAY BE SUBJECT TO A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS AND TO REQUIRE CREDITORS TO FILE MAXIMUM RATE SCHEDULES AND PAY FILING FEES BY JANUARY THIRTY-ONE OF EACH YEAR.

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

Credit service charge for consumer credit sales

SECTION 1. Section 37-2-201 of the 1976 Code is amended by adding:

"(7) Notwithstanding subsection (2), if a seller can demonstrate with competent evidence that (a) any failure to post rates properly filed under Section 37-2-305 was a result of a bona fide error or excusable neglect, (b) the rates were properly posted when the error or neglect was discovered or brought to the seller's attention, and (c) that no other failure to post rates has been brought to the seller's attention by the Department of Consumer Affairs or by consumers within the previous forty-eight month period, then the maximum rate of credit service charges assessable by the seller is the rate properly filed with the Department of Consumer Affairs, provided, however, the seller that has failed or neglected to post rates is subject to a civil penalty of up to $5,000.00 payable to the Department of Consumer Affairs."

Loan finance charges for consumer loans other than supervised loans

SECTION 2. Section 37-3-201 of the 1976 Code is amended by adding:

"(6) Notwithstanding subsection (2), if a lender can demonstrate with competent evidence that (a) any failure to post rates properly filed under Section 37-3-305 or failure to properly file these rates under Section 37-3-305 was a result of a bona fide error or excusable neglect, (b) the rates were properly posted or properly filed when the error or neglect was discovered or brought to the lender's attention, and (c) that no other failure to post or file rates has been brought to the lender's attention by the Department of Consumer Affairs or by consumers within the previous forty-eight month period, then the maximum rate of loan finance charges assessable by the lender is the rate previously properly filed with the Department of Consumer Affairs, provided, however, the lender that has failed or neglected to post rates or to file rates is subject to a civil penalty of up to $5,000.00 payable to the Department of Consumer Affairs."

Filing and posting maximum rate schedule

SECTION 3. Section 37-3-305(8) of the 1976 Code is amended to read:

"(8) Every creditor shall file at least one maximum rate schedule and pay at least one twenty-dollar filing fee during each state fiscal year disclosing that creditor's existing maximum rates. This filing and fee required of each creditor is due annually before the thirty-first day of January of each year. If this filing does not change any maximum rates previously filed, the creditor is not required to alter posted maximum rates. If any creditor has not filed a maximum rate schedule with the Department of Consumer Affairs by the thirty-first day of January of the year in which it is due then on this date the filing is no longer effective and the maximum finance charge that the creditor may impose on any credit extended after that date may not exceed eighteen percent a year until that time as the creditor files a revised maximum rate schedule that complies with this section."

Time effective

SECTION 4. This act takes effect upon approval by the Governor.