The senate in South Carolina is currently debating placing caps on payday loans. While the payday lending industry supports lending caps at $500 in South Carolina and allowing borrowers to only have one active payday loan at a time, they are rejecting further caps on interest. The industry also generally rejects the idea of a lending cap on payday loans based on the borrower's income level.
There are several other details on the plate. While companies like Teletrack already provide services allowing payday lenders to verify a borrowers lending history, it appears some regulators are seeking to have a separate database instated. The South Carolina House recently voted on a rate cap of $600 and a maximum outstanding loan balance of 10 loans, but this has yet to gain passage through the Senate.
The payday loan debate has been going on for several years now, and will surely continue for many more.
