SC lawmakers debate payday lending regulation

By: Associated Press
By: Associated Press

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.

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