Payday Loans and Cash Advance in South Carolina
Legal, up to $550 at 15%. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in South Carolina.
Legal in South Carolina. Max amount: $550 advanced to any customer at one time (S.C. Code 34-39-180(B)). Max fee: $15 per $100, meaning no more than 15% of the principal (S.C. Code 34-39-180(E)). A $300 loan for 14 days costs about $45 (391% APR). Regulator: South Carolina State Board of Financial Institutions, Consumer Finance Division, 803-734-2020.
Is a Cash Advance Legal in South Carolina?
Payday loans are legal in South Carolina under the Deferred Presentment Services Act, Title 34, Chapter 39 of the South Carolina Code, and are licensed and examined by the State Board of Financial Institutions through its Consumer Finance Division. A licensee may advance up to $550 on a check it agrees to hold for up to 31 days, and may charge no more than 15 percent of the principal as its fee. The Act bans renewals and bans paying off one deferred presentment check with another, and it requires every licensee to check a statewide real-time database before lending so that a customer never has more than one loan open. Once you repay, you cannot borrow again the same business day, and from your eighth loan in a calendar year the wait grows to the next business day after that. You may cancel any loan at no cost by the close of the following business day, and once every 12 months you may convert a loan you cannot repay into an extended payment plan of at least four substantially equal installments with no added interest or fees. At the maximum fee, $300 for two weeks costs $45, about 391 percent APR.
The governing law is South Carolina Deferred Presentment Services Act (S.C. Code Ann. 34-39-110 to 34-39-290; limits at 34-39-180, database at 34-39-175 and 34-39-270, extended payment plan at 34-39-280).
Loan Limits and Terms in South Carolina
| Rule | SC |
|---|---|
| Maximum amount | $550 advanced to any customer at one time (S.C. Code 34-39-180(B)) |
| Maximum term | 31 days (S.C. Code 34-39-180(A)) |
| Minimum term | None stated in the Act |
| Maximum fee per $100 | $15 per $100, meaning no more than 15% of the principal (S.C. Code 34-39-180(E)) |
| APR on a $300, 14-day loan | About 391% with the $45 maximum fee on $300 for 14 days |
| Rollovers | Prohibited; no renewals, extensions or repaying one check with the proceeds of another (S.C. Code 34-39-180(F)) |
| Cooling-off period | No new loan on the business day you repay; from the eighth loan in a calendar year, no new loan that day or the next business day (S.C. Code 34-39-270) |
| Statewide database | Statewide real-time database run for the Consumer Finance Division; one outstanding transaction per customer (S.C. Code 34-39-175, 34-39-270) |
The 15 percent fee is charged once on the principal for a term of up to 31 days, so the annual rate depends entirely on how long the licensee holds the check. The database does three jobs: it refuses a second loan while one is open, it enforces the same-day and eighth-loan waiting periods, and it blocks a new loan for anyone who has an unfinished extended payment plan. Because the $550 limit is measured across all licensees, a borrower cannot get around it by visiting a second store. The Act has no minimum term, so a lender may set a due date as early as your next payday, which is what pushes the APR on short loans toward 400 percent.
What a $300 Loan Costs in South Carolina
| Amount | Term | Fee | You repay | APR |
|---|---|---|---|---|
| $300 | 14 days | $45 | $345 | 391% |
S.C. Code 34-39-180(E) caps the fee at 15 percent of the principal, so on $300 the maximum fee is 300 x 0.15 = $45 and the payoff on the due date is $345. Using a 14-day term, the most common payday cycle, APR = 45 / 300 x 365 / 14 = 3.91, or about 391 percent. If the licensee holds the check for the full 31 days the same $45 works out to about 177 percent. No other charges are allowed on the original loan, and an extended payment plan adds nothing.
Run your own numbers with the cash advance calculator.
Consumer Protections and Who to Call in South Carolina
- No one may offer deferred presentment services to a South Carolina resident without a license from the State Board of Financial Institutions, whether or not the lender has a location in the state (S.C. Code 34-39-130).
- Before lending, the licensee must check the statewide database and refuse if you have an outstanding transaction, repaid one that business day, or are inside the two-day wait that applies from your eighth loan of the year (S.C. Code 34-39-270).
- You have the right to rescind any deferred presentment transaction at no cost on or before the close of the following business day (S.C. Code 34-39-270(K)).
- The fee may not exceed 15 percent of the principal, the advance may not exceed $550, and the licensee may not hold your check for more than 31 days (S.C. Code 34-39-180).
- A licensee may not renew or extend a check for a fee and may not let you repay one deferred presentment check with the proceeds of another (S.C. Code 34-39-180(F)).
- Once in any 12-month period you may elect an extended payment plan that repays the balance in at least four substantially equal installments with no interest or additional fees during the plan (S.C. Code 34-39-280).
Complaints and licence checks go to the South Carolina State Board of Financial Institutions, Consumer Finance Division: 803-734-2020, bofi.sc.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.
Online vs Storefront Lenders in South Carolina
S.C. Code 34-39-130(C) says no person may engage in deferred presentment services with a customer residing in South Carolina, whether or not that person has a location in the state, except under the Act. An online lender therefore needs the same license, must use the same database and is bound by the same $550 and 15 percent limits as a storefront. Websites that offer more than $550, lend without a database check or renew a loan for a fee are operating outside the Act, and any tribal or offshore lender that claims South Carolina law does not apply to it is wrong about a loan made to a South Carolina resident. The Consumer Finance Division licenses and examines deferred presentment providers and takes complaints by phone at 803-734-2020 and through the Board of Financial Institutions site. It can act against licensees directly and refer unlicensed lenders to the Department of Consumer Affairs or the Attorney General.
Alternatives If a Payday Loan Is Not the Right Fit
South Carolina supervised lenders, licensed by the same Consumer Finance Division, make installment loans that run for months rather than weeks, so the annual rate is far lower than a 31-day payday loan even when the dollar fee looks higher. Federal credit unions in the state offer Payday Alternative Loans, a small-dollar product with a capped rate and a small application fee for members, and many credit unions run their own emergency loan programs. Non-loan options include an advance on wages from your employer, an overdraft line at your bank, a payment plan with the utility or medical provider you owe, and local emergency assistance. If you already have a deferred presentment loan you cannot repay, use the extended payment plan under S.C. Code 34-39-280 before the due date: it splits the balance into at least four equal payments at no extra cost and is available once every 12 months, which is cheaper than any new loan.
Compare the installment loan and payday alternative loan options before you decide.
Frequently Asked Questions
Are payday loans legal in South Carolina?
Yes. The Deferred Presentment Services Act (S.C. Code Title 34, Chapter 39) lets licensed providers advance up to $550 for up to 31 days at a fee of no more than 15 percent of the principal. Every loan is logged in a statewide database, you may have only one open at a time, and renewals are banned.
How much does a $300 payday loan cost in South Carolina?
Up to $45, which is 15 percent of the principal under S.C. Code 34-39-180(E), so you repay $345. On a 14-day term that is about 391 percent APR; if the lender holds your check for the full 31 days the same fee is about 177 percent. No other fees may be charged on the original loan.
How long do I have to wait between payday loans in South Carolina?
You cannot take a new loan on the same business day you repay one. From your eighth deferred presentment transaction in a calendar year, S.C. Code 34-39-270 extends the wait to the next business day as well. The statewide database enforces both rules automatically, and it also blocks a new loan while an extended payment plan is unpaid.
Can I cancel a South Carolina payday loan?
Yes. Under S.C. Code 34-39-270(K) every licensee must give you the right to rescind at no cost on or before the close of the following business day. Return the cash you received and the lender returns your check and charges nothing. The right applies to every deferred presentment transaction in the state, not just your first loan with a lender.
What if I cannot repay my South Carolina payday loan on time?
Ask for the extended payment plan under S.C. Code 34-39-280 before the loan is due. You get at least four substantially equal installments, the lender may not add interest or fees during the plan, and you may use it once in any 12-month period. The lender may not renew the loan for a fee or roll it into a new check.
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