South Carolina General Assembly
115th Session, 2003-2004
A234, R314, H4818
STATUS INFORMATION
General Bill
Sponsors: Reps. Cato, J.H.Neal, MoodyLawrence, Lloyd, R.Brown, Emory, Mack, CobbHunter, 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
DateBodyAction Description with journal page number
2/19/2004HouseIntroduced and read first time HJ57
2/19/2004HouseReferred to Committee on Labor, Commerce and IndustryHJ58
3/25/2004HouseCommittee report: Favorable with amendment Labor, Commerce and IndustryHJ2
3/30/2004HouseAmended HJ21
3/30/2004HouseRead second time HJ23
3/31/2004HouseRead third time and sent to Senate HJ12
3/31/2004SenateIntroduced and read first time SJ14
3/31/2004SenateReferred to Committee on Banking and InsuranceSJ14
4/29/2004SenateCommittee report: Favorable Banking and InsuranceSJ20
5/4/2004SenateRead second time SJ13
5/5/2004SenateRead third time and enrolled SJ11
5/6/2004Ratified R 314
5/11/2004Signed By Governor
5/14/2004Copies available
5/14/2004Effective date 05/11/04
5/18/2004Act No.234
VERSIONS OF THIS BILL
2/19/2004
3/25/2004
3/30/2004
4/29/2004
(A234, R314, H4818)
AN ACT TO AMEND SECTION 372203, 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 373202, RELATING TO ADDITIONAL CHARGES PERMITTED IN CONNECTION WITH A CONSUMER LOAN, SO AS TO INCLUDE OPENEND CREDIT PURSUANT TO A LENDER CREDIT CARD OR SIMILAR ARRANGEMENT IN CONFORMANCE WITH OTHER PROVISIONS AND TO MAKE A TECHNICAL CORRECTION; TO AMEND SECTION 373203, 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 373303, RELATING TO NOTICE TO COSIGNERS 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
SECTION1.Section 372203(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
SECTION2.Section 373202(1)(c) of the 1976 Code is amended to read:
“(c)with respect to openend credit pursuant to a lender credit card or similar arrangement, as defined in Section 371301(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 overlimit 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 overlimit 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
SECTION3.Section 373203(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
SECTION4.Section 373303(2) of the 1976 Code is amended to read:
“(2)A clear and conspicuous notice in substantially the following form complies with this section:
NOTICE
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.
IDENTIFICATION OF DEBT YOU MAY HAVE TO PAY
______
(Name of Debtor)
______
(Name of Creditor)
______
(Date)
______
(Kind of Debt)
I have received a copy of this notice.
______
(Date) (Signed)”
Notice to cosignors and similar parties
SECTION5.Section 373303(5) of the 1976 Code is amended to read:
“(5)A notice to cosigner 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 cosigner 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 MagnusonMoss WarrantyFederal Trade Commission Improvement Act, Public Law 9363F) 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 cosigner:
IDENTIFICATION OF DEBT YOU MAY HAVE TO PAY
______
(Name of Debtor)
______
(Name of Creditor)
______
(Date)
______
(Kind of Debt)
I have received a copy of this notice.
______
(Date)(Signed)”
Time effective
SECTION6.This act takes effect upon approval by the Governor.
Ratified the 6th day of May, 2004.
Approved the 11th day of May, 2004.
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