The bill S. 488 aims to amend the South Carolina Code of Laws by introducing new regulations to combat predatory lending practices associated with consumer installment loans and deferred presentment loans. It establishes Section 39-5-30, which makes it unlawful for lenders to engage in practices such as failing to assess a borrower's ability to repay a loan, making loans to consumers who cannot repay, and renewing loans excessively within specified timeframes. The bill also prohibits unsolicited loan offers and requires proper licensing for lenders. Additionally, it clarifies that these regulations do not apply to state or federally chartered depository institutions or credit unions.

Furthermore, the bill adds Section 37-3-516, which mandates the creation of a database by the Consumer Finance Division of the Board of Financial Institutions to monitor loan transactions and prevent excessive refinancing. This database will collect essential borrower information and track loan activity to ensure compliance with the new regulations. The Board is tasked with reporting annually to the General Assembly on various loan metrics, and the database is required to be operational by January 1, 2026. The bill will take effect upon the Governor's approval.

Statutes affected:
03/25/2025: 39-5-30, 37-3-516
Latest Version: 39-5-30, 37-3-516