South Carolina introduced its current payday loan legislation in 1999 under the Deferred Presentment Services Act. Payday loans in South Carolina are regulated for interest, lending terms, payment plans, cash amounts, and lender licensing.
Payday lenders in South Carolina may authorize loans for up to 31 days with a maximum cash amount of $550. Interest rates are limited to $15 per $100 borrowed. Consumers may not have more than one payday loan active at a time, and lenders must consult a database of current borrowers before approving a new payday loan to make sure the customer does not have any outstanding loans. Under state law, customers must wait one day after paying off their previous loan before borrowing a new one. Consumers are also limited to 8 payday loans within a 12 month period.
South Carolina payday loan laws prohibit rollovers. If you don’t think you can pay off your loan in full, you should inform your lender before your loan’s due date and specify that you wish to extend your payment terms. Under state law, a lender cannot charge you additional fees or interest on your extended repayment plan. Installments are scheduled on or shortly after your future paydays to ensure that you’ll have the cash in your account to cover payment.
Residents can borrow South Carolina payday loans in person or online. Instant loan lenders must be licensed in South Carolina and follow all state laws to provide cash loans to resident consumers. Check with the financial regulation board to make sure your lender is licensed to provide online payday loans in South Carolina.
As always, consider all your financial options before deciding to borrow a payday loan. Payday loans are best used for small, incidental expenses, like unplanned emergencies. If you have a larger expense, consider financing it with a personal loan or using money from savings instead of borrowing cash. Always do what makes sense for your personal finances.