Leadpile’s Blog

A new payday loan law has taken effect today in South Carolina. This new law was passed with the intent to protect consumers, however it seems that it actually has an ability to hurt consumers that already have an outstanding payday loan. A local SC news channel is reporting, “The new law limits consumers to just one payday loan at a time. It sets up a statewide database, starting Feb. 1, to keep track of all payday loans to prevent anyone from having more than one. But the database will not include past payday loans that are outstanding as of Feb. 1.” So will something like this prevent lenders from staying in the state of SC? Hopefully not.. because people in SC I am sure still need payday loans even though a new law was passed.

In recent news, South Carolina is the next state to be heading in the direction of payday lending regulations. According to the Augusta Chronicle, the South Carolina house of representatives has passed a bill preventing consumers from taking out more than one payday loan (up to $600) at a time. In addition to the number of payday loans being potentially allowed, the bill requires the industry to allow customers to go into a extended payment plan if they can’t meet that deadline (without incorporating more fees). This bill is now going to be headed to the Senate to be voted on. If this passes this is just another state that is cracking down on payday lenders. Leadpile Lead Exchange will be keeping an eye on this.