The South Carolina Fair Lending Alliance (SCFLA) is a collective of diverse community organizations and individuals who seek to promote the economic mobility of South Carolinians by eliminating high-cost lending practices through the passage of legislation that will make a 36% rate cap (inclusive of all fees) on consumer loan products the law. The mission of the SCFLA is to promote the economic mobility of South Carolinians by advocating for a 36% all-inclusive interest rate cap for consumer loan products.
A rate cap bill will limit the interest rates (inclusive of all fees) on consumer loans (including payday, auto title and high-cost consumer installment loans) to 36% APR (annual percentage rate). Currently there are no limits on the rates that can be charged by supervised lenders and people in SC are regularly paying 200% - 500% for these loans.
This legislation will match the federal Military Lending Act, which protects all active duty servicemembers and their dependents from loans with rates above 36%. There are about 2 million current servicemembers and their dependents throughout the US (50,000 in South Carolina) who are protected by the Military Lending Act. Research tell us that this rate cap legislation works to protect individuals and their families.