Read all about it right here:
COLUMBIA — The South Carolina House gave overwhelming approval Wednesday to a bill aimed at preventing residents from being trapped in a cycle of debt through payday lending.
The proposal, approved 93-16, prevents consumers from taking out more than one loan at a time, up to $600.
An online database — which must be up by Feb. 1, 2010 — would instantly report when a loan is made. Lenders must check it to ensure customers don’t have outstanding loans elsewhere.
In South Carolina, lenders charge $15 for every $100 borrowed on a two-week loan.
The bill requires the industry to let customers go into an extended payment plan if they can’t meet that deadline, without incurring any extra fees.
The bill requires another perfunctory vote in the House before heading to the Senate.
While this is a strong consumer protection bill, unlike a 36% rate cap, it leaves the industry in a position to continue serving its customers.
It’s good to see a state legislature that actually cares about the greater good for it’s citizenry. Strong consumer protections should be balanced with the recognition of the payday industry as a legitimate and valuable source of short-term credit.