South Carolina

Every payday loan lender in South Carolina must obtain a license from the State Board of Financial Institutions. To apply, a payday loan business must have at least $25,000 in assets and provide the following information: legal name and residence of the business, location, financial responsibility, background experience, any partnerships, associations, and corporations adjacent to the licensed location. Under South Carolina law, a payday loan lender cannot lend cash advances unless the customer’s bank account has been verified. Cash advance loan lenders must post a notice that has the fees listed.

The most amount of time a payday loan lender can defer a check is 31 days. In addition, payday loan lenders in South Carolina can only lend payday loans up to $300. This amount is one of the lowest compared to other states that offer up to $500.

As with other states, the loan agreement must be signed by the customer and the lender. It should contain the name of the lender, the transaction date, the amount of the check, a statement of total fees (expressed in dollars and annual percentage rate). The agreement should give the lender authorization to defer a payday loan for up to 31 days as stated above.

The maximum amount of fees any payday lender can charge in South Carolina is 15 percent of the face amount of the check. This fee can only be imposed one time to the borrower. In South Carolina if the check is returned to the payday loan lender due to insufficient funds, closed account, or stop payment, the payday loan lender may pursue all available legal action. Under those circumstances, an additional fee up to $10 can be charged.