South Carolina Payday Loan Laws and Protections
A consumer guide to South Carolina's deferred-presentment amount, fee, term, database, rescission, and payment-plan rules.
How Payday Loans Work in South Carolina
Under Title 34, Chapter 39, South Carolina regulates this short-term product. The statute views this as a deal in which a business keeps a client's check. Except for identified exemptions, a provider must obtain authorization, even if the provider has no physical presence in South Carolina, if the provider provides services to a South Carolina resident.
The customer hands the company a payment instrument for later deposit and receives less cash than the face value of the instrument. The cash delivery paperwork needs to include the dollar fee, APR, date of the transaction, and payment due date.
Amount, Fee, and Term Limits
The cash advance limit is $550, before the fee. The fee cannot exceed 15% of the advance, and the advance check can be held for 31 days. So a $550 cash advance would fee $82.50 for a total of $632.50.
An APR expresses costs as an annualized figure so that short-term offers can be assessed on an equivalent basis. Examine the dollar charge and the amount due as well as the APR disclosure. A short-term offer does not make the charge trivial compared to the amount received.
Database and Borrowing-Frequency Rules
Prior to providing the advance, the provider looks up the statewide system for an eligibility answer of "Yes" or "No." In South Carolina, a customer may not maintain a second active check-holding agreement while the first remains in existence.
A new advance cannot go into effect on the same date as the end of an earlier advance. Beginning on the customer's eighth advance for the calendar year, the pause also includes the following workday. If the system issues a no, it is the provider's responsibility to explain to the customer how to reach the system operator for the response.
Rescission, Rollovers, and Payment Plans
State law allows customers a brief, free reversal period. Customers must return cash by the end of the provider's business day in order to take advantage of the reversal period. This must occur on the business day after the contract is signed. Maintain documented proof that the transaction was reversed.
The date on the deal is the final date the company can hold the check without cashing it. Additionally, the company and its affiliates may not grant a second advance to eliminate the first.
Make the request for the installment option before the stated deadline. Another option is not available for twelve months. Repayment occurs in four or more fairly equal portions scheduled around the paydays. This plan does not increase the cost of the product. There is no fee for paying the plan off early.
If the Check Is Returned
The provider can file a civil collection case for the non-honoring payment item, and court fees may apply. Chapter 39 does not add a unique charge for returned items and does not consider the customer's check a criminal case. If there is an expected issue with payment, ask for the extended schedule before the due date.
Before Borrowing in South Carolina
Check the license to determine if you are sharing the right information and what exactly you are sharing along with personal, income, and bank information. Read the entire agreement and make sure you leave enough money after repayment for your necessary expenses. Do not pay an upfront loan fee using a gift card, wire transfer, or cryptocurrency.
South Carolina Payday Loan Laws & Regulations
State examiners authorize the providers and examine their business records. The table summarizes this check-based credit product. The real contract conditions are bound by the providers and applicable law.
| Regulation | South Carolina Rule |
|---|---|
| Governing law | SC Code 34-39. |
| Regulator | State financial-services office. |
| Maximum amount advanced | $550 maximum, in addition to the borrowing fee. |
| Maximum fee | $0.15 maximum for each dollar received. |
| Maximum term | 31 days maximum. |
| Outstanding-loan limit | Only one provider may have an outstanding advance for the customer. |
| Cooling-off rule | No new deal may be made on the payoff date. From the eighth deal in a calendar year, no new deal may be made on the next workday. |
| Rescission | Funds must be returned by the time the provider closes on the next workday. |
| Renewal or rollover | May not extend beyond the due date stated in the agreement. |
| Longer repayment option | Requested prior to the due date, one payment plan with no added charge is allowed every 12 months, with four or more payments scheduled around the customer's income dates. |
| Returned check | Civil collection and court costs may apply. No additional return fee and no criminal liability under this chapter. |
Read the current statutory text for the complete requirements. Use the state regulator's institution directory for licensing information and contact details.
The connections between regulators and laws were reviewed on September 7, 2026. Both state laws and regulations may change.