Current Status Introducing Body:Senate Bill Number:890 Ratification Number:162 Act Number:98 Primary Sponsor:Committee (02) Type of Legislation:GB Subject:Consumer finance laws Date Bill Passed both Bodies:May 16, 1991 Computer Document Number:CYY/18606.SD Governor's Action:S Date of Governor's Action:May 30, 1991 Introduced Date:Apr 16, 1991 Last History Body:------ Last History Date:May 30, 1991 Last History Type:Act No. 98 Scope of Legislation:Statewide Sponsor Committee:Banking and Insurance Sponsor Committee Number:02 Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
890 ------ May 30, 1991 Act No. 98
890 ------ May 30, 1991 Signed by Governor
890 ------ May 27, 1991 Ratified R 162
890 House May 16, 1991 Read third time, enrolled for
ratification
890 House May 15, 1991 Read second time
890 House May 08, 1991 Committee Report: Favorable 26
890 House Apr 23, 1991 Introduced, read first time, 26
referred to Committee
890 Senate Apr 18, 1991 Read third time, sent to House
890 Senate Apr 17, 1991 Read second time
890 Senate Apr 16, 1991 Introduced, read first time,
placed on Calendar without
reference
View additional legislative information at the LPITS web site.
(A98, R162, S890)
AN ACT TO AMEND SECTION 34-29-140, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERMITTED CHARGES AND OTHER TERMS AND CONDITIONS OF LOANS MADE UNDER THE CONSUMER FINANCE LAW, SO AS TO REVISE FINANCE CHARGES AND INITIAL CHARGES ON CERTAIN LOANS, AND TO PROVIDE THAT CERTAIN DOLLAR AMOUNTS OF THIS SECTION MUST BE ADJUSTED FOR INFLATION IN THE SAME MANNER THAT ADJUSTMENTS FOR INFLATION ARE MADE UNDER THE CONSUMER PROTECTION CODE; TO AMEND SECTION 34-29-250, RELATING TO CRIMINAL PENALTIES FOR CONSUMER FINANCE LAW VIOLATIONS, SO AS TO AUTHORIZE THE BOARD OF FINANCIAL INSTITUTIONS TO ALSO ASSESS CIVIL PENALTIES FOR VIOLATIONS; AND TO REPEAL SECTION 34-29-230 RELATING TO REGULATORY PROVISIONS REGARDING PARTICULAR PERSONS ENGAGED IN THE LENDING BUSINESS.
Be it enacted by the General Assembly of the State of South Carolina:
Charges revised
SECTION 1. Section 34-29-140(a) of the 1976 Code is amended to read:
"(a) Maximum finance charges permitted; initial charge.--A licensee under this chapter may lend any sum of money not exceeding seventy-five hundred dollars, excluding charges, and notwithstanding the fact that the loan may be repayable in substantially equal monthly installments, may contract for and receive finance charges not to exceed:
(1) Loans Not Exceeding One Hundred Fifty Dollars.--On loans with a cash advance not exceeding one hundred fifty dollars, a charge not to exceed two dollars and fifty cents per month if contracted for in writing by the borrower, may be charged in lieu of interest, and such loans may be repaid in weekly payments, with four weeks constituting a month.
(2) Loans Over One Hundred Fifty Dollars But Not Exceeding Two Thousand Dollars.--On loans with a cash advance exceeding one hundred fifty dollars but not exceeding two thousand dollars, twenty dollars per one hundred dollars on that portion of the cash advance not exceeding two hundred dollars; eighteen dollars per one hundred dollars on that portion of the cash advance exceeding two hundred dollars but not exceeding six hundred dollars; eleven dollars per one hundred dollars on that portion of the cash advance exceeding six hundred dollars but not exceeding one thousand dollars; and nine dollars per one hundred dollars on that portion of the cash advance exceeding one thousand dollars but not exceeding two 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 fifty-six 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 may 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-month period. Upon any loan made to the borrower of a sum in excess of the amount on which the initial charge may have been charged within the three-month period, then the initial charge may be contracted for and received on the excess. The initial charge is a one-time charge, not a per annum charge, and is not subject to refund.
(3) Loans Over Two Thousand But Not Over Seventy-Five Hundred Dollars.--On loans with a cash advance exceeding two thousand dollars but not exceeding seventy-five hundred dollars, the finance charges authorized in subparagraphs (1) and (2) of this subsection (a) are not permitted on any part of the loan. On such loans a licensee under this chapter may contract for and receive finance charges not to exceed seven dollars per one hundred dollars of the cash advance, when the loan is made payable over a period of one year, and proportionately at that rate over a longer or shorter period.
In addition to the finance charges authorized in subparagraph (3) 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 five percent of the cash advance or two hundred dollars, whichever is 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 morals 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. The initial charge may not be contracted for or received on any renewal loan made to the same borrower more often than once in a twelve-month period. Upon any loan made to the borrower of a sum in excess of the amount on which the initial charge may have been charged within the twelve-month period, then the initial charge may be contracted for and received on the excess. If a loan is renewed or refinanced after the expiration of the initial twelve-month period the initial charge may not exceed two percent of the cash advance. The initial charge is a one-time charge, not a per annum charge, and is not subject to refund."
Adjustments for inflation
SECTION 2. Section 34-29-140 of the 1976 Code is amended by adding:
"(j) Change of Dollar Amounts.--The dollar amounts provided in subsections (a)(2) and (a)(3) of this section shall change from time to time in the manner provided by Section 37-1-109, except that the index for December, 1991, is the Reference Base Index for purposes of adjustments to the dollar amounts of this section. The Chairman of the State Board of Financial Institutions has the same powers and duties in regard to the adjustments to the dollar amounts of subsection (a)(2) of this section as does the Administrator of the Department of Consumer Affairs with adjustments to the dollar amounts required in Section 37-1-109."
Penalties revised
SECTION 3. Section 34-29-250 of the 1976 Code is amended to read:
"Section 34-29-250. Any person who wilfully violates any provision of this chapter, for which a penalty has not been provided, is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars nor less than one hundred dollars in the discretion of the court.
The board, in addition to the criminal penalties provided by this section, may also assess a civil penalty against the violator in the form of a fine not exceeding two thousand dollars for each violation. This civil penalty may be assessed in addition to or in lieu of the criminal penalties authorized by this section."
Repeal
SECTION 4. Section 34-29-230 of the 1976 Code is repealed.
Time effective
SECTION 5. This act takes effect upon approval by the Governor.
Approved the 30th day of May, 1991.