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H. 5034
STATUS INFORMATION
General Bill
Sponsors: Reps. Loftis, Hamilton, Leach, G.R. Smith and Vaughn
Document Path: l:\council\bills\nbd\12465ac06.doc
Introduced in the House on April 20, 2006
Currently residing in the House Committee on Judiciary
Summary: Pawnbrokers
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 4/20/2006 House Introduced and read first time HJ-60 4/20/2006 House Referred to Committee on Judiciary HJ-60
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 40-39-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITION OF TERMS USED IN THE REGULATION OF PAWNBROKERS, SO AS TO REVISE THE DEFINITION OF "PLEDGED GOODS"; TO AMEND SECTION 40-39-100, RELATING TO CHARGES ON LOANS, SO AS TO REMOVE THE TWO THOUSAND DOLLAR CAP ON THE AMOUNT OF MONEY A PAWNBROKER MAY LOAN; AND TO AMEND SECTION 40-39-150, AS AMENDED, RELATING TO ADMINISTRATIVE FINES AND PENALTIES FOR VIOLATIONS, SO AS TO PROVIDE THAT CERTAIN CRIMINAL PENALTIES ARE DISCRETIONARY RATHER THAN MANDATORY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-39-10(3) of the 1976 Code is amended to read:
"(3) 'Pledged goods' means tangible personal property other than choses in action, title, securities, or printed evidences of indebtedness, which property is deposited with or otherwise actually delivered into the possession of a pawnbroker in the course of his business in connection with a pawn transaction."
SECTION 2. Section 40-39-100 of the 1976 Code is amended to read:
"Section 40-39-100. Pawnbrokers may charge interest on loans not exceeding the following amounts:
(1) at the rate of two dollars and fifty cents per thirty-day period for each ten dollars loaned for the first fifty dollars loaned;
(2) at the rate of two dollars per thirty-day period for each ten dollars loaned on that portion of the loan exceeding fifty dollars but not exceeding one hundred dollars;
(3) at the rate of one dollar and fifty cents per thirty-day period for each ten dollars loaned on that portion of the loan exceeding one hundred dollars but not exceeding two hundred dollars;
(4) at the rate of one dollar per thirty-day period for each ten dollars loaned on that portion of the loan exceeding two hundred dollars but not exceeding one thousand dollars;
(5) at the rate of fifty cents per thirty-day period for each ten dollars loaned on that portion of the loan exceeding one thousand dollars but not exceeding two thousand dollars.
No pawnbroker may separate or divide a pawn transaction into two or more transactions for the purpose or with the effect of obtaining a total pawn interest rate in excess of that authorized for an amount financed equal to the total of the amounts financed in the resulting transactions.
No pawnbroker may make a loan in excess of two thousand dollars. Every pawnbroker shall post these rates in a form which is prescribed by the administrator. The following statement must be included in the posted rate schedule:
'Consumers: All pawnbrokers operating in South Carolina are required by law to post a schedule showing the maximum rate of LOAN FINANCE CHARGES stated as dollars for each ten dollars for each thirty-day period that the pawnbroker intends to charge for various types of pawn transactions. The purpose of this requirement is to assist you in comparing the maximum rates that pawnbrokers charge, thereby furthering your understanding of the terms of pawn transactions and helping you to avoid the uninformed use of credit.
NOTE: Pawnbrokers are prohibited only from granting credit at rates higher than those specified above. A pawnbroker may be willing to grant you credit at rates that are lower than those specified, depending on the amount, terms, collateral, and your credit worthiness'."
SECTION 3. Section 40-39-150(B) of the 1976 Code, as amended by Act 128 of 2005, is further amended to read:
"(B) The administrative law judge also may impose administrative fines of up to seven hundred fifty dollars for each offense upon persons violating any of the provisions of this chapter up to a maximum of fifteen thousand dollars for the same set of transactions or occurrences. Each violation constitutes a separate offense. In addition, a person violating the provisions of Sections 40-39-20 and 40-39-30 is guilty of a misdemeanor and, upon conviction, must may be punished by a fine not exceeding fined up to one thousand dollars or by imprisonment for a term imprisoned not exceeding more than sixty days, or both. The administrative law judge may revoke or suspend a pawnbroker's certificate of authority in addition to the penalties provided in this section."
SECTION 4. This act takes effect upon approval by the Governor.
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