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Chapter Three

  • 3.104-7504 (PDF), issued 3/26/1975
    Transactions by insurance premium service companies are "consumer loans" within the purview of the South Carolina Consumer Protection Code.
     
  • 3.104-7511 (PDF), issued 10/22/1975
    A person "regularly engages" in making consumer loans where such loans are made as a regular course of business, as opposed to isolated incidents.
     
  • 3.104-7705 (PDF), issued 5/3/1977
    Second mortgage loan of $1000 or more to purchase an interest in borrower's residence, made by a supervised lender not related to holder of first lien, may be made at rate provided for supervised loans.
     
  • 3.104-7706 (PDF), issued 5/13/1977
    A construction loan to an individual to build his own home if secured by a first lien on land is not a "consumer loan."
     
  • 3.104-7804 (PDF), issued 8/25/1978
    A "share loan" which is also a consumer loan is subject to the maximum finance charge provisions of § 3.508.
     
  • 3.104-7908 (PDF), issued 5/10/1979
    First mortgage loans for condominiums are consumer loans.
     
  • 3.104-8014 (PDF), issued 12/4/1980
    Wraparound mortgage loans are consumer loans.
     
  • 3.104-8113 (PDF), issued 11/5/1981
    Loan to purchase and improve non-owner occupied rental property is not a consumer loan.
     
  • 3.104,106-1403 (PDF), issued 11/14/2014
    Litigation funding transactions constitute a "loan" under the Consumer Protection Code.
     
  • 3.104,106, 403-1701 (PDF), issued 4/6/2017
    A future income investment agreement constitutes a consumer loan under the Code and is prohibited thereunder due to being secured by an irrevocable assignment of earnings.
     
  • 3.107-7710 (PDF), issued 8/9/1977
    Clarification of “precomputed.”
     
  • 3.109-8010 (PDF), issued 9/3/1980
    "Origination fee" or "discount points" subject to refund on prepayment.
     
  • 3.109,503-1603 (PDF), issued 11/8/2016
    Supervised Lenders' websites to collect payments on existing loans must be licensed; Lender may not impose a fee to accept payments.
     
  • 3.201-7909 (PDF), issued 5/10/1979
    Unsupervised condominium loan is subject to 12% rate ceiling unless excluded from Consumer Protection Code.
     
  • 3.201-8103 (PDF), issued 5/4/1981
    Non-supervised lenders may charge up to 18% annual percentage rate.
     
  • 3.201-8111 (PDF), issued 9/16/1981
    Finance charges for open-end loans using the graduated rate scale for supervised lenders are not "deemed to exceed" the maximum finance charge permissible if calculated on the average daily balance.
     
  • 3.201-8201 (PDF), issued 6/15/1982
    Second mortgage construction loan to consumer is consumer loan subject to the provisions of the Consumer Protection Code. A subsequent first mortgage loan made by the same lender to the same individual secured by a newly constructed residence is excluded from the Consumer Protection Code under certain circumstances.
     
  • 3.201-8402 (PDF), issued 12/28/1984
    Clarification on permissible charges for revolving consumer loan accounts under the Consumer Protection Code.
     
  • 3.202-7608 (PDF), issued 10/1/1976, Currently Under Review
    Supervised lender may sell single premium accidental death insurance as a separate transaction not in connection with a loan.
     
  • 3.202-7613 (PDF), issued 11/23/1976
    Appraisal fee is part of the finance charge and is not a permissible "additional charge."
     
  • 3.202-7708 (PDF), issued 7/11/1977
    Title examination and appraisal fees may be collected in advance and non-refundable on a loan secured by an interest in land even if the loan is not consummated.
     
  • 3.202-8303 (PDF), issued 11/25/1983
    The Consumer Protection Code does not authorize a "release fee."
     
  • 3.202-8901 (PDF), issued 4/29/1989
    A supervised licensed lender may not charge an annual fee in a revolving consumer loan transaction unless the loan agreement constitutes a lender credit card or similar arrangement.  To so qualify, the card, the letter of credit or other credit confirmation should be identifiable as a credit card or similar arrangement.
     
  • 2.202, 3.202-1702 (PDF), issued 12/12/2017
    Transaction fee imposed by the DMV as part of the Electronic Lien and Titling program is an official fee that can be assessed by a creditor as a permissible additional charge. Fee imposed by a third party to conduct filing of document must be absorbed by creditor or included in finance charge.
     
  • 3.203-7611 (PDF), issued 11/19/1976
    Clarification of "delinquency charge."
     
  • 3.203-7906 (PDF), issued 5/7/1979
    Definition of "current installment."
     
  • 3.203-7906 (Reconsideration) (PDF), issued 8/19/1980
    Definition of "current installment."
     
  • 3.203-8012 (PDF), issued 9/9/1980
    Subsection (3) of the delinquency charge sections governs the application of partial as well as full payments to installments.
     
  • 3.203-8203 (PDF), issued 12/13/1982
    Disallowance of automatic escalation of delinquency charges and application of § 37-1-109 on contractual delinquency charges.
     
  • 3.203-8204 (PDF), issued 12/13/1982
    Cured default does not count towards required defaults for conversion to interest bearing account.
     
  • 3.209-1401 (PDF), issued 9/12/2014
    Lender may not impose a prepayment penalty on a third party who assumes the obligation.
     
  • 3.210-7609 (as amended 12/09/1976) (PDF), issued 10/21/1976
    The code does not permit lenders to treat "one day as constituting an entire month."
     
  • 3.210-7919 (PDF), issued 12/27/1979
    Upon prepayment in full of an interest-bearing consumer credit transaction by the proceeds of consumer credit insurance, finance charges may accrue until date proceeds are paid to creditor but no later than 20 business days after satisfactory proof of loss is furnished to creditor.
     
  • 3.210-8015 (PDF), issued 12/19/1980
    $15 "minimum charge" is authorized only if contracted for, there is a prepayment, earned finance charge is less than $15, and legal finance charge contracted for is at least $15.
     
  • 3.210-8109 (PDF), issued 9/8/1981
    Appraisal fee is part of the finance charge subject to rebate upon prepayment in full.
     
  • 3.210-8205 (PDF), issued 12/30/1982
    In calculating a rebate for a consumer loan with an extended first payment, the lender may not treat any period of time less than the period from the transaction date to the first due date as the first computational period for the loan.
     
  • 3.210-8205 (Reconsideration) (PDF), issued 12/29/1983
    In calculating a rebate for a consumer loan with an extended first payment, the lender may not treat any period of time less than the period from the transaction date to the first due date as the first computational period for the loan.
     
  • 3.301-7803 (PDF), issued 4/18/1978
    Loans other than consumer loans made subject to the South Carolina Consumer Protection Code under § 37-3-601 require Federal Truth-in-Lending disclosures under § 37-3-301 only when an independent review of the federal act reveals that such disclosures must be made.
     
  • 3.301-7915 (PDF), issued 8/3/1979
    Disclosure of appraisal fee in connection with consumer loan is governed by Federal Truth-in-Lending Act.
     
  • 3.302-9401 (PDF), issued 11/2/1994
    Lenders must disclose written account statements, including payoff amount, if requested be debtors.
     
  • 3.303-7617 (PDF), issued 12/3/1976
    "Notice to co-signers and similar parties" applies to lender credit card arrangements.
     
  • 3.305-8601 (PDF), issued 7/30/1986
    Failure to file a maximum rate schedule leads to an 18% maximum annual percentage rate.
     
  • 3.403-7512 (PDF), issued 10/22/1975
    An irrevocable authorization to withhold personal earnings for payment of a consumer loan is prohibited.
     
  • 3.104,106, 403-1701 (PDF), issued 4/6/2017
    A future income investment agreement constitutes a consumer loan under the Code and is prohibited thereunder due to being secured by an irrevocable assignment of earnings.
     
  • 3.404-7510 (PDF), issued 9/29/1975
    Limitations on attorney’s fees chargeable to defaulting debtor.
     
  • 3.404-8003 (PDF), issued 3/31/1980
    Limitation on reasonable attorney's fees to 15% of unpaid debt after default does not apply to restricted loans.
     
  • 3.404-8101 (PDF), issued 2/25/1981
    Consumer Protection Code does not authorize insurance premium service companies to charge attorneys' fees.
     
  • 3.405-7917 (PDF), issued 9/19/1979
    Rate after maturity of a consumer loan exceeding that agreed to and permitted for the transaction originally results in an unauthorized default charge.
     
  • 3.408-8114 (PDF), issued 11/13/1981
    Elimination of "free ride" on a lender credit card account is a change subject to § 37-3-408(1) conditions.
     
  • 3.501-7912 (PDF), issued 6/5/1979
    Supervised lenders may make non-consumer loans which are not governed by the Consumer Protection Code.
     
  • 3.501,502-1501 (PDF), issued 7/27/2015
    Purchaser of supervised loans must be a supervised financial organization or a licensed supervised lender; Purchase does not toll statute of limitations.
     
  • 3.503-7914 (PDF), issued 8/3/1979
    Supervised loan secured by land may be "closed" at a law office apart from the lender's premises.
     
  • 3.503-8016 (PDF), issued 12/19/1980
    Supervised loan may be made at or from licensed office although consumer completes application out of state.
     
  • 3.503-0801 (PDF), issued 6/20/2008
    Internet-based supervised lenders must obtain supervised lending licenses for a website address.
     
  • 3.109,503-1603 (PDF), issued 11/8/2016
    Supervised Lenders' websites to collect payments on existing loans must be licensed; Lender may not impose a fee to accept payments.
     
  • 3.508-7702 (PDF), issued 4/6/1977
    Clarification of "year."
     
  • 3.508-7910 (PDF), issued 6/5/1979
    Licensed supervised lender is subject to maximum supervised loan rates and charges for first mortgage consumer loan to build or purchase a residence unless loan is excluded from Consumer Protection Code.
     
  • 3.508-7911 (PDF), issued 6/5/1979
    Supervised lender making a consumer loan secured by a residence is subject to maximum supervised loan rates.
     
  • 3.511-7610 (PDF), issued 11/3/1976
    Clarification of "equal periodic intervals."
     
  • 3.512-7802 (PDF), issued 4/11/1978
    "Brick-wall" amendment does not prohibit money order business by supervised lender.
     
  • 3.601-7712 (PDF), issued 11/14/1977
    Inventory loan secured by first mortgage on land subject to Consumer Protection Code by agreement.
     
  • 3.601-7918 (PDF), issued 12/27/1979
    Written agreements between parties may allow application of Consumer Protection Code to certain loans.
     
  • 3.601-8009 (PDF), issued 9/3/1980
    Non-consumer loan made by supervised lender and brought under Consumer Protection Code by written agreements with borrower is subject to maximum supervised loan rates.
     
  • 3.601-8104 (PDF), issued 5/19/1981
    Parties to a loan may agree in a signed writing that the loan is subject to the Consumer Protection Code when its purpose is uncertain.
     
  • 3.605-8007 (PDF), issued 7/30/1980
    Clarification of $25,000 benchmark for revolving loan type of arrangement.

Disclaimer:

The Administrative Interpretations are provided by the South Carolina Department of Consumer Affairs (SCDCA) for informational purposes only. While every attempt has been made to ensure the accuracy of the information on the website, SCDCA makes no warranties or representations regarding its accuracy or completeness, and each user of this website understands that SCDCA disclaims any liability for any damages in connection with its use. Due to changes in law and interpretation, it is recommended that you confirm with the SCDCA that the documents intended for use are still accurate and have not been superseded prior to any formal use.