February 11, 2009
COLUMBIA, S.C. (AP) -- South Carolina legislators are debating a
bill they say will prevent residents from being trapped in a cycle
of debt through payday lending.
The House is considering a key vote on the measure Wednesday.
More than 30 proposed changes to the bill are up for debate.
The proposal prevents consumers from taking out more than one
$600 loan at a time. It requires the industry to check a database
before making loans.
Lenders are allowed to charge $15 for every $100 borrowed for
the loans, which must be repaid in two weeks. The bill would allow
consumers to go into an extended payment plan if they can't meet
the two-week deadline.
Critics say borrowers should have to wait at least a week before
taking out a second loan.
(Copyright 2009 by The Associated Press. All Rights Reserved.)