Bill To Restrict Payday Lending In SC Advances

Under the legislation, consumers could borrow no more than $600 or 25 percent of their income. A state database would be set up to bar consumers from taking out multiple loans. And they'd have to wait seven days before borrowing again. Meanwhile, the industry will have to pay $500 to license each location, with the money going to regulatory and law enforcement efforts, including cracking down on Internet lending. Each licensed location would pay a $1,500 fine for a first offense, lose their license for a year on a third offense and permanently for a fourth offense.

The House last month passed a bill with no link to incomes and with a waiting period only after someone takes out 10 loans. In essence. the Senate adopted the same bill it passed last year with tougher regulation, but a broader range of penalties. That bill was killed by House leaders, who refused to allow it come to the floor for debate.

While Fulmer called the income limits arbitrary, it is routine for lenders to link lending decisions to income.

"We are absolutely thrilled that they have gone back to the Senate version from last year," said AARP lobbyist Teresa Arnold.