South Carolina Payday Loan Rules Borrowers Must Know

If you’re thinking about getting a payday loan in South Carolina, it’s important to understand the local laws that govern these short-term loans. While payday lending is legal in South Carolina, the state has put certain rules in place to protect consumers from falling into long-term debt traps.

This blog breaks down how payday loans work in South Carolina, the borrowing limits, repayment terms, and your rights as a borrower.

✅ Are Payday Loans Legal in South Carolina?

Yes. South Carolina permits payday lending and has enacted specific laws under the South Carolina Deferred Presentment Services Act to regulate lenders and protect borrowers.

These laws are enforced by the South Carolina Board of Financial Institutions, which licenses payday lenders and monitors their practices.

💵 Loan Amount Limits & Terms

Here are the key regulations you should know before applying:

• Maximum Loan Amount: $550 per loan
• Loan Term: Minimum 7 days; Maximum 31 days
• Rollovers: Not allowed. Borrowers can’t “roll over” or renew their loan to delay payment.
• Cooling-Off Period: After taking 1 loan, a borrower must wait 1 business day before taking another.
• Outstanding Loan Limit: You can have only one active payday loan at a time across all lenders.

This protects you from stacking multiple loans, which is a common reason people fall into payday loan cycles.

📉 Fees & APRs in South Carolina

The state caps the finance charge at 15% of the amount advanced.

That means:

• For a $500 loan, the most a lender can charge you is $75
• That works out to an APR of around 390% on a 14-day loan — typical for payday loans but important to understand

Always ask your lender for the full APR before agreeing to a loan.

🔒 Your Rights as a Borrower

As a borrower in South Carolina, you have the right to:

• Receive a written agreement with all terms clearly explained
• Be informed about your total repayment amount, including fees
• Get access to a statewide loan tracking database, which prevents lenders from issuing multiple loans to a single borrower
• Avoid harassment or threats from lenders or collection agents

If you feel your rights are being violated, you can contact the South Carolina Department of Consumer Affairs or the Board of Financial Institutions to file a complaint.

🔄 Repayment Plans & Defaults

If you can’t repay your loan on time:

• Lenders must offer a one-time Extended Payment Plan (EPP) without additional fees
• You won’t be eligible for another payday loan until the EPP is fully paid off
• If your check bounces or you default, lenders cannot threaten jail time — that’s illegal

However, your account may be sent to collections, which can negatively impact your credit and lead to additional fees.

🧠 Final Thoughts

South Carolina has made an effort to strike a balance: allowing access to short-term credit while limiting practices that trap people in debt. But payday loans are still a high-cost form of borrowing, and they should be used only when truly necessary.

If you’re considering a payday loan, explore all your options first — including installment loans, salary advances, or emergency assistance programs.

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