SC bill would close loopholes in payday lending - Live5News.com | Charleston, SC | News, Weather, Sports

SC bill would close loopholes in payday lending

COLUMBIA, S.C. (AP) - South Carolina legislators say they want to close loopholes in a payday lending law that took effect earlier this month.

A law passed last year limits people to one loan at a time, of up to $550. It requires lenders to check a new online database to ensure borrowers have no outstanding loans elsewhere.

But senators said Tuesday payday lenders are skirting the law by re-characterizing their business. They say companies are switching their licenses so they can give similar loans and not deal with the database.

Senators say they're tired of the industry finding ways around legislation meant to curb predatory practices.

The bill is up for debate by the full Senate.

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