Bill To Restrict Payday Lending In SC Advances

Legislation to greatly restrict the payday lending industry in South Carolina is advancing. A Senate subcommittee Thursday approved a bill that requires a seven-day cooling off period between taking out the loans. It also restrictions the loans to a maximum of $600 or 25 percent of a borrower’s income.

AP
Published: March 12, 2009

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COLUMBIA, S.C. (AP) - Legislation to greatly restrict the payday lending industry in South Carolina is advancing.

A Senate subcommittee Thursday approved a bill that requires a seven-day cooling off period between taking out the loans. It also restrictions the loans to a maximum of $600 or 25 percent of a borrower’s income.

Advance America Cash Centers Inc. spokesman Jamie Fulmer calls the limits in the legislation arbitrary. Fulmer says the bill now heading to the Senate Banking and Insurance Committee will put payday lenders like the Spartanburg company out of business.

Payday lenders no longer operate in neighboring Georgia and North Carolina because of those states’ laws.