An S.C. House subcommittee voted Thursday to two-ply the mass payday companies can make a loan of and stripped it of provisions that would have circumscribed loans to 25 percent of a borrower’s income. S.C. Rep. Phillip Owens, R-Pickens, who made the shifting for the changes, said the moves avoided de trop regime interference.
But consumer advocates said Owens’ changes stripped the folding money of needed protections for borrowers. Owens and four other members of the House Banking And Consumer Affairs Subcommittee approved the changes by option vote. They were amending a account passed Feb. 19 by the S.C. Senate that would have rigorously restrictive payday loans.
Instead, House Banking and Consumer Affairs’ changes draw the charge more closely sound bruited about law, which allows a friends to advance as much as $600 at a beat to a borrower and burden $90 in fees for the two-week loan, the alike of a 390 percent annual kindle rate. The Senate tab installed a lending cap: It requires companies to set the mass of each accommodation to no more 25 percent of a borrower’s overweight gain for the two weeks of the loan. Those earning more than $2,000 over two weeks would be meagre to a $500 loan, the top allowed for any borrower.
Owens’ replacement increased the top to $600. The paper money still contains the Senate’s debarring on borrowers flourishing from one company to another, the invoice requires the State Board of Financial Institutions to follow a database of payday loans. Under the known law, the condition does not collect statistics to monitor whether borrowers are taking out multiple $600 loans with other companies. Also untouched is a Senate measures that says borrowers can hold only one allowance at a ease - and must recess at least seven days between paying off one loan and compelling out another with any lender.
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