Let's End the Debt Trap in South Carolina

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The SC Legislature passed reforms to protect borrowers in SC in 2010, but the lenders have found ways around that legislation. Passing rate cap legislation is the best way to ensure that consumers in SC are able to become economically independent. 

Rate cap legislation will also keep hundreds of millions of dollars in the pockets of South Carolinians, as opposed to going into international holding companies and venture capital companies outside of SC that are currently reaping the profits. We want to keep those funds in the pockets of South Carolinians so that they can build financial independence and have more disposable income to spend in our state.

Although our active duty servicemembers and their dependents are protected by the federal Military Lending Act, our veterans are not, and they are often targeted. Predatory lenders used to set up shop right outside the gates of military bases to target the servicemembers. They can no longer do that thanks to the federal Military Lending Act – which SC rate cap legislation will be designed to mirror. 

Predatory lenders target anyone with a regular check coming in – even if it is a social security check or a disability check. We want to protect our seniors and disabled neighbors from being lured into an endless cycle of triple digit debt that they can never repay. Payday lenders get access to a borrower’s checking account and draft their payment as soon as the check is deposited – regardless of how many other bills the borrower must pay (like rent and utilities). 

 Currently, predatory lenders are generating a debt trap that creates a cycle of dependency in our state. The financial devastation brought about by payday, auto title and high-cost installment loans is deeply impacting children when the family car is repossessed, or the family loses their housing because high-cost loan payments are not leaving enough for rent.