Vote Smart's Synopsis:

Vote on a motion to advance a bill to third reading that increases regulations on payday lending, including, but not limited to, capping the number of payday loans that individuals may receive at one time and successively, and establishing the right to an extended repayment plan if necessary.

Highlights:

- Increases the maximum amount that may be issued in a payday loan from $300 to $600 (Sec. 4). - Prohibits lenders from issuing payday loans to individuals with an outstanding payday loan balance, including individuals that have entered into an extended payment plan agreement (Sec. 2). - Prohibits lenders from issuing payday loans to individuals who have received 10 successive loans until after a period of days equal to 1 of the individual's pay period (Sec. 2). - Requires lenders to provide customers with the opportunity to enter into an extended repayment plan approved by the Consumer Finance Division of the Board of Financial Institutions without facing additional fees if they are unable to pay the balance on time (Sec. 2). - Increases the application fee to obtain or renew a license to issue payday loans within the state from $250 to $500, and increases the fee for a license renewal for additional payday lending locations from $50 to $100 (Sec. 6). - Requires 1/2 of the revenue collected from the application fees listed above to be allocated to the South Carolina Attorney General's Office (Sec. 6). - Requires the Consumer Finance Division of the Board of Financial Institutions to establish an online database of individuals that have an outstanding loan, including individuals that have entered into an extended payment plan agreement, or have received 10 successive payday loans by February 1, 2010 (Secs. 1). - Requires lenders to check the online database to determine if an applicant is eligible for a payday loan (Sec. 2) - Requires the Board of Financial Institutions to annually report to the General Assembly information regarding loans made in South Carolina, specifically the number of (Sec. 7):

- Loans made in South Carolina by loan amount and the dollar amount of fees collected for each amount; -Borrowers by loan amount and the number of borrowers by the number of times each narrower took out a loan; - Borrowers who pay off their loans through an extended payment plan; - Loans that were not paid off in the previous year by loan amount; - Loans in which the lender submitted a check for collection by loan amount and the number of loans in which the lender took action for collection; and - 24-hour periods in which a successive loan is conducted after a prior loan is completed.

Full Bill Text