A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 37-1-102, RELATING TO THE PURPOSES OF THE CONSUMER PROTECTION CODE, SO AS TO INCLUDE THE PROMOTION OF EDUCATION FOR CONSUMERs, BEST PRACTICES FOR BUSINESSES, AND TO MEDIATE COMPLAINTS; BY AMENDING SECTION 37-6-106, RELATING TO INVESTIGATORY POWERS OF THE ADMINISTRATOR, SO AS TO REQUIRE THE PRESENTATION OF PROBABLE CAUSE BEFORE BEGINNING AN INVESTIGATION; BY AMENDING SECTION 37-6-108, RELATING TO EnFORCEMENT ORDERS OF THE ADMINISTRATOR, SO AS TO REQUIRE CERTAIN INFORMATION BE PROVIDED BEFORE A CEASE AND DESIST IS ISSUED TO A BUSINESS; AND BY AMENDING SECTION 37-2-307, RELATING TO MOTOR VEHICLE SALES CONTRACT CLOSING FEES, SO AS TO REQUIRE THE CLOSING FEE TO BE PROMINENTLY DISPLAYED WITH THE ADVERTISED PRICE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1.   Section 37-1-102 of the S.C. Code is amended to read:

   Section 37-1-102.   (1) This title shall be liberally construed and applied to promote its underlying purposes and policies.

   (2) The underlying purposes and policies of this title are:

      (a) promote education for consumers and best practices for businesses;

      (b) mediate complaints between a consumer and a business when possible;

      (c) to simplify, clarify and modernize the law governing retail installment sales, consumer credit and usury;

      (b)(d) to provide rate ceilings to assure an adequate supply of credit to consumers;

      (c)(e) to further consumer understanding of the terms of credit transactions and to foster competition among suppliers of consumer credit so that consumers may obtain credit at reasonable cost;

      (d)(f) to protect consumer buyers, lessees, and borrowers against unfair practices by some suppliers of consumer credit, having due regard for the interests of legitimate and scrupulous creditors;

      (e)(g) to permit and encourage the development of fair and economically sound consumer credit practices;

      (f)(h) to conform the regulation of consumer credit transactions to the policies of the Federal Consumer Credit Protection Act; and

      (g)(i) to make uniform the law, including administrative rules, among the various jurisdictions.

   (3) The administrator and the Department of Consumer Affairs must attempt to resolve consumer disputes and other matters using the underlying purposes of this title set forth in subsection (2)(a) and (b) before taking investigatory, enforcement, or punitive actions.

   (4) A reference to a requirement imposed by this title includes reference to a related rule of the administrator adopted pursuant to this title.

SECTION 2.   Section 37-6-106 of the S.C. Code is amended to read:

   Section 37-6-106.   (1) If the administrator has probable cause to believe that a person has engaged in an act which is subject to action by the administrator, he may make an investigation to determine if the act has been committed, and, to the extent necessary for this purpose, may administer oaths or affirmations, and, upon his own motion or upon request of any party, may subpoena witnesses, compel their attendance, adduce evidence, and require the production of any matter which is relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, records, documents, electronically stored information, or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence. However, before beginning the investigation and taking any of the actions set forth in this chapter, the administrator must present the person subject to the action, in writing, with the reasons and factors that caused the administrator to have probable cause.

   (2) If the person's records are located outside this State, the person at his option shall either make them available to the administrator at a convenient location within this State or pay the reasonable and necessary expenses for the administrator or his representative to examine them at the place where they are maintained. The administrator may designate representatives, including comparable officials of the State in which the records are located, to inspect them on his behalf.

   (3) Upon failure without lawful excuse to obey a subpoena or to give testimony and upon reasonable notice to all persons affected, the administrator may apply to the Administrative Law Court for an order compelling compliance.

   (4) The administrator shall not make public the name or identity of a person whose acts or conduct he investigates pursuant to this section or the facts disclosed in the investigation, but this subsection does not apply to disclosures in actions or enforcement proceedings pursuant to this title.

   (5) A complaint made by a consumer or entity must be verified to be substantial and legitimate before the administrator or the Department of Consumer Affairs may administer oaths or affirmations, subpoena witnesses, compel their attendance, adduce evidence, and require the production of any information which may be relevant to the investigation, including the existence, description, nature, custody, condition, and location of any books, records, documents, electronically stored information, or other tangible things and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence.

SECTION 3.   Section 37-6-108 of the S.C. Code is amended by adding:

   (H)(1) Notwithstanding any other provision of this section, before the administrator is allowed to issue a cease and desist to a business, the administrator must:

         (a) present the reasons and factors that caused the administrator to have probable cause or a legitimate complaint to the business;

         (b) establish whether the matter is a singular incident, or is an intentional business practice that violates the law; and

         (c) allow the business thirty days to cure the issue after notice, and if not cured within thirty days, attempt mediation.

      (2) Each year, the Department of Consumer Affairs shall prepare and deliver a report to the General Assembly detailing the disposition of all court cases and legal actions it has engaged in, and the costs of such legal actions, including any reimbursements paid to the subject of the action.

SECTION 4.   Section 37-2-307(A)(2) of the S.C. Code is amended to read:

   (2) The closing fee must be included in prominently displayed with the advertised price of the motor vehicle, disclosed on the sales contract, and displayed in a conspicuous location in the motor vehicle dealership.

SECTION 5.   This act takes effect upon approval by the Governor.

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