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 allows individuals affected by these practices to seek legal remedies.

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 annual data to the General Assembly regarding loans made in South Carolina, including details on loan amounts, fees, and borrower behavior. The database is required to be operational by January 1, 2026, and 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