The bill S. 488 aims to amend the South Carolina Code of Laws to prohibit predatory lending practices associated with consumer installment loans and deferred presentment loans. It introduces 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 outlines the responsibilities of lenders to document their analyses of borrowers' financial situations and prohibits certain unsolicited lending practices. Additionally, it clarifies that these regulations do not apply to state or federally chartered depository institutions or credit unions.

Furthermore, the bill establishes 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 violations related to refinancing limits. This database will collect essential borrower information and track loan transactions to ensure compliance with the new regulations. The Board is required to report annually to the General Assembly on various loan statistics, and the database must be operational by January 1, 2026. The enforcement of these provisions will be overseen by the Attorney General, allowing individuals affected by these practices to seek legal remedies.

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