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Bill 3884

                    Current Status

Bill Number:                      3884
Type of Legislation:              General Bill GB
Introducing Body:                 House
Introduced Date:                  19990408
Primary Sponsor:                  J.H. Neal
All Sponsors:                     J.H. Neal, Howard, Pinckney, J. Hines, 
                                  Allison, Askins, Bailey, Bales, Battle, 
                                  Bowers, Breeland, G. Brown, J. Brown, 
                                  T. Brown, Canty, Carnell, Clyburn, 
                                  Cobb-Hunter, Dantzler, Davenport, Delleney, 
                                  Emory, Gilham, Gourdine, Harris, Harvin, 
                                  Hayes, M. Hines, Inabinett, Jennings, Kennedy, 
                                  Kirsh, Lee, Lloyd, Mack, Maddox, Martin, 
                                  McCraw, M. McLeod, McMahand, Miller, 
                                  Moody-Lawrence, Ott, Neilson, Parks, Phillips, 
                                  Rhoad, Riser, Rodgers, Rutherford, Scott, 
                                  Seithel, Sheheen, Simrill, F. Smith, J. Smith, 
                                  Stille, Stuart, Taylor, Trotter, Webb, 
                                  Whipper, Wilder
Drafted Document Number:          l:\council\bills\dka\3273mm99.doc
Residing Body:                    House
Current Committee:                Labor, Commerce and Industry Committee 26 
                                  HLCI
Subject:                          Consumer credit transaction, limit of 
                                  thirty-six percent imposed on charges in 
                                  connection with; Consumer Affairs


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   19990420  Co-Sponsor removed (Rule 5.2) by Rep.          Klauber
House   19990415  Co-Sponsor removed (Rule 5.2) by Rep.          Limehouse
House   19990413  Co-Sponsor removed (Rule 5.2) by Rep.          Whatley
                                                                 Knotts
House   19990408  Introduced, read first time,           26 HLCI
                  referred to Committee


                             Versions of This Bill

TO AMEND CHAPTER 5, TITLE 37, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REMEDIES AND PENALTIES IN THE CONSUMER PROTECTION CODE, BY ADDING PART 4 INCLUDING SECTIONS 37-5-401 THROUGH 37-5-403 SO AS TO PROVIDE FOR AN AGGREGATE LIMIT OF THIRTY-SIX PERCENT ON ALL CHARGES IMPOSED IN CONNECTION WITH A CONSUMER CREDIT TRANSACTION, TO SPECIFY THE CONSUMER LENDERS AFFECTED, AND TO PROVIDE FOR CRIMINAL PENALTIES FOR VIOLATION OF THE LIMIT; BY ADDING SECTIONS 37-2-212, 37-2-715, 37-3-212, 37-3-515, AND 37-10-107 SO AS TO PROVIDE FOR THE LIMITATION SEPARATELY AND SPECIFICALLY FOR A CREDITOR IN A CONSUMER CREDIT SALE, A LESSOR IN A CONSUMER RENTAL-PURCHASE AGREEMENT, A LENDER OF NONSUPERVISED LOANS, A LENDER OF SUPERVISED LOANS, AND A LENDER ON THE SECURITY OF A CONSUMER MOTOR VEHICLE TITLE; BY AMENDING SECTION 37-2-106, RELATING TO CONSUMER LEASES, SECTION 34-29-140, AS AMENDED, RELATING TO A CONSUMER FINANCE COMPANY LICENSED AS A RESTRICTED LENDER, SECTION 34-39-180, RELATING TO A LICENSEE FOR DEFERRED PRESENTMENT SERVICES, SECTION 34-41-60, RELATING TO A LICENSEE FOR CHECK CASHING SERVICES, AND SECTION 40-39-100, AS AMENDED, RELATING TO PAWNBROKERS, ALL SO AS TO PROVIDE SEPARATELY AND SPECIFICALLY FOR THE LIMITATION ON THE CHARGES THEY IMPOSE IN CONNECTION WITH THEIR CONSUMER TRANSACTIONS.

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

SECTION 1. Chapter 5, Title 37 of the 1976 Code is amended by adding:

Section 37-5-401. Notwithstanding another provision of law, a consumer creditor may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties.

Section 37-5-402. This limitation on the charges by a lender for consumer credit applies to each of the following persons, including their assignees:

(1) creditor making a consumer credit sale, as defined in Section 37-1-301(13);

(2) lessor in a consumer rental-purchase agreement, as defined in Section 37-2-701;

(3) lessor in a consumer lease other than a rental-purchase agreement, as defined in Section 37-2-106;

(4) lender of consumer loans, as defined in Section 37-3-102, including a supervised lender, as defined in Section 37-3-501(1), and a restricted lender licensed pursuant to Chapter 29, Title 34;

(5) person licensed to engage in check cashing services, as defined in Section 34-41-10;

(6) person licensed to engage in deferred presentment services, as defined in Section 34-39-120;

(7) pawnbroker, as defined in Section 40-39-10(2); and

(8) person in the business of lending money on the security of a consumer motor vehicle certificate of title.

Section 37-5-403. A person who is in violation of this part is guilty of a misdemeanor and, upon conviction, must be fined not more than one thousand dollars or imprisoned not more than one year, or both, in addition to all other consumer debtor's rights and remedies provided by law."

SECTION 2. Chapter 2, Title 37 of the 1976 Code is amended by adding:

"Section 37-2-212. A creditor making a consumer credit sale may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties.

Section 37-2-715. A lessor in a consumer rental-purchase agreement may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 3. Chapter 3, Title 37 of the 1976 Code is amended by adding:

"Section 37-3-212. A lender of nonsupervised loans may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties.

Section 37-3-515. A lender of supervised loans may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 4. Chapter 10, Title 37 of the 1976 Code is amended by adding:

"Section 37-10-107. A person engaged in the business of lending money on the security of a motor vehicle title may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 5. Section 37-2-106 of the 1976 Code is amended by adding at the end:

"(3) A lessor in a consumer lease may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 6. Section 34-29-140 of the 1976 Code is amended by adding at the end:

(l) A licensee pursuant to the provisions of this chapter may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 7. Section 34-39-180 of the 1976 Code, as added by Act 433 of 1998, is amended by adding at the end:

"(H) A person licensed to engage in deferred presentment services may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 8. Section 34-41-60 of the 1976 Code, as added by Act 433 of 1998, is amended by adding at the end:

"(F) A person licensed to engage in check cashing services may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 9. Section 40-39-100 of the 1976 Code is amended by adding at the end a new paragraph to read:

"A pawnbroker may not impose charges, whether for interest, costs, premium, penalty, compensation, consideration, expense, or other fee, which in the aggregate are greater than thirty-six percent of all sums advanced or contemplated by the parties."

SECTION 10. This act does not affect an action or proceeding commenced or a right accrued before the effective date of this act.

SECTION 11. This act takes effect upon approval by the Governor.

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