South Caroline update:
February 11, 2009 | South Carolina, industry, media coverage, regulation | Comments (0)State Senator Yancy McGill writes a column explaining things:
An important piece of legislation is moving to the House calendar. The House Labor and Commerce Committee unanimously passed, with little debate and discussion, a bill addressing the payday lending industry.
The bill, with more than 70 sponsors, creates a database where the loans of borrowers can be tracked as well as a no-cost, extended payment period for borrowers who are unable to repay their loans on time. The database would be paid for through fees on the industry.
Critics of the bill think the legislation wouldn’t go far enough in regulating lenders because it fails to require a cooling off period between loans. They think borrowers should have to wait a week before taking out a second loan.
The bill also fails to limit the number of consecutive loans a customer may enter into and raises to $600 the amount a borrower may get against his or her next paycheck. As it comes through the House debate, there more than likely will be many amendments.
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