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A234, R314, H4818
STATUS INFORMATION
General Bill
Sponsors: Reps. Cato, J.H. Neal, Moody-Lawrence, Lloyd, R. Brown, Emory, Mack, Cobb-Hunter, Govan, Chellis, Whipper, Trotter, Cooper, White, Barfield, Harrison, Sandifer, Thompson, McGee, Merrill, W.D. Smith and Huggins
Document Path: l:\council\bills\pt\1864mm04.doc
Introduced in the House on February 19, 2004
Introduced in the Senate on March 31, 2004
Last Amended on March 30, 2004
Passed by the General Assembly on May 5, 2004
Governor's Action: May 11, 2004, Signed
Summary: Consumer loans
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
-------------------------------------------------------------------------------
2/19/2004 House Introduced and read first time HJ-57
2/19/2004 House Referred to Committee on Labor, Commerce and Industry
HJ-58
3/25/2004 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-2
3/30/2004 House Amended HJ-21
3/30/2004 House Read second time HJ-23
3/31/2004 House Read third time and sent to Senate HJ-12
3/31/2004 Senate Introduced and read first time SJ-14
3/31/2004 Senate Referred to Committee on Banking and Insurance SJ-14
4/29/2004 Senate Committee report: Favorable Banking and Insurance SJ-20
5/4/2004 Senate Read second time SJ-13
5/5/2004 Senate Read third time and enrolled SJ-11
5/6/2004 Ratified R 314
5/11/2004 Signed By Governor
5/14/2004 Copies available
5/14/2004 Effective date 05/11/04
5/18/2004 Act No. 234
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
2/19/2004
3/25/2004
3/30/2004
4/29/2004
(A234, R314, H4818)
AN ACT TO AMEND SECTION 37-2-203, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DELINQUENCY CHARGES IN CONNECTION WITH A CREDIT SALE, SO AS TO PROVIDE THAT A DELINQUENCY CHARGE MUST NOT BE APPLIED TO A DELINQUENCY ATTRIBUTABLE ONLY TO AN ASSESSMENT AGAINST AN EARLIER INSTALLMENT AND TO PROVIDE FOR CONSTRUCTION OF THE PROVISION IN CONFORMITY WITH FEDERAL LAW; TO AMEND SECTION 37-3-202, RELATING TO ADDITIONAL CHARGES PERMITTED IN CONNECTION WITH A CONSUMER LOAN, SO AS TO INCLUDE OPEN-END CREDIT PURSUANT TO A LENDER CREDIT CARD OR SIMILAR ARRANGEMENT IN CONFORMANCE WITH OTHER PROVISIONS AND TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 37-3-203, RELATING TO DELINQUENCY CHARGES IN CONNECTION WITH A CONSUMER LOAN, SO AS TO PROVIDE THAT THE DELINQUENCY CHARGE MUST NOT BE APPLIED TO A DELINQUENCY ATTRIBUTABLE ONLY TO AN ASSESSMENT AGAINST AN EARLIER INSTALLMENT AND TO PROVIDE FOR CONSTRUCTION OF THE PROVISION IN CONFORMITY WITH FEDERAL LAW; AND TO AMEND SECTION 37-3-303, RELATING TO NOTICE TO CO-SIGNERS AND SIMILAR PARTIES TO A CONSUMER LOAN, SO AS TO INCLUDE A CONSPICUOUS NOTICE IN CONFORMITY WITH OTHER LAW AND TO MAKE A TECHNICAL CORRECTION.
Be it enacted by the General Assembly of the State of South Carolina:
Delinquency charges in credit sales
SECTION 1. Section 37-2-203(5) of the 1976 Code is amended to read:
"(5) A delinquency charge pursuant to this section must not be collected on a payment that is otherwise a full installment payment for the applicable period and is paid on its due date or within ten days after its due date if the only delinquency is attributable to a late fee or a delinquency charge assessed on an earlier installment. It is the intent of the legislature that, in construing this subsection the courts be guided by interpretations to 16 C.F.R. 444.4 and 12 C.F.R. 227.15, as amended from time to time, relating to late charges, given by the Federal Trade Commission, Federal Reserve Board, and the Federal Courts."
Additional charges in consumer loans
SECTION 2. Section 37-3-202(1)(c) of the 1976 Code is amended to read:
"(c) with respect to open-end credit pursuant to a lender credit card or similar arrangement, as defined in Section 37-1-301(16), which entitles the debtor to purchase or lease goods or services from at least one hundred persons not related to the lender, under an arrangement pursuant to which the debts resulting from the purchases or leases are payable to the lender;
(i) annual charges, payable in advance, for the privilege of using the lender credit card or other credit arrangement; and
(ii) an over-limit charge not to exceed ten dollars if the balance of the account exceeds the credit limit established pursuant to the agreement between the lender and the debtor plus the lesser of ten percent of the credit limit or one hundred dollars. The over-limit charge authorized by this subitem must not be assessed again against the debtor unless the account balance has been reduced below the credit limit plus the lesser of ten percent of the credit limit or one hundred dollars, and the debtor's account balance subsequently exceeds the credit limit plus the lesser of ten percent of the credit limit or one hundred dollars; and"
Delinquency charges in consumer loans
SECTION 3. Section 37-3-203(5) of the 1976 Code is amended to read:
"(5) A delinquency charge pursuant to this section must not be collected on a payment that is otherwise a full installment payment for the applicable period and is paid on its due date or within ten days after its due date if the only delinquency is attributable to a late fee or a delinquency charge assessed on an earlier installment. It is the intent of the legislature that in construing this subsection, the courts be guided by interpretations to 16 C.F.R. 444.4 and 12 C.F.R. 227.15, as amended from time to time, relating to late charges, given by the Federal Trade Commission, Federal Reserve Board, and the Federal Courts."
Notice to cosignors and similar parties
SECTION 4. Section 37-3-303(2) of the 1976 Code is amended to read:
"(2) A clear and conspicuous notice in substantially the following form complies with this section:
You agree to pay the debt identified below although you may not personally receive any property, services, or money. You may be sued for payment although the person who receives the property, services, or money is able to pay. This notice is not the contract that obligates you to pay the debt. Read the contract for the exact terms of your obligation.
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
I have received a copy of this notice.
_______________________ ___________________________
(Date) (Signed)"
Notice to cosignors and similar parties
SECTION 5. Section 37-3-303(5) of the 1976 Code is amended to read:
"(5) A notice to co-signer which complies with the Federal Trade Commission's Trade Regulation Rule on Credit Practices (16 C.F.R. Section 444) or which complies with a regulation regarding co-signer notices promulgated by any federal agency pursuant to Section 18(f) of the Federal Trade Commission Act, 15 U.S.C. Section 57a(f) (Section 202(a) of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act, Public Law 93-63F) likewise complies with this section, provided that the notice does not indicate that the creditor may collect any amount or engage in any activity which would be illegal under South Carolina law and the notice contains the following information signed and dated by the co-signer:
________________________________________________________
________________________________________________________
________________________________________________________
________________________________________________________
I have received a copy of this notice.
_______________________ ___________________________
(Date) (Signed)"
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 6th day of May, 2004.
Approved the 11th day of May, 2004.
This web page was last updated on Monday, December 7, 2009 at 10:39 A.M.