Action Alert: Pay Day Lending

Written by Gerald L. Rudolph

Thursday, 30 April 2009 18:10

Payday Lending Consumer Protections

The Senate will take up PayDay Lender regulation after completion of its work on the budget Tuesday, May 5, 2009.

Please study the issue and the Bill AND--before Tuesday, May 5, contact your Senator asking that he support legislation which protects consumers.

The Council urges the SC Senate to help strengthen South Carolina's economy by regulating predatory payday lending by:

Limit borrowers to one loan at a time enforced by a statewide database.
Tie the allowable size of a loan to the borrower's income by limiting the loan to no more than 25% of the borrower's income during the term of the loan, capping the loan at $500.
Add language defining an extended payment plan to be used when the borrower is unable to pay.
Prohibit electronic debiting of accounts.
Establish a minimum cooling off period of at least 7 days.
Mandate monetary penalties for out-of-compliance payday lenders.