February 6, 2024

Senate Committee on Labor, Commerce and Industry
South Carolina State House
Gressette Room 307
1101 Pendleton Street, Suite 313
Columbia, South Carolina 29201

Dear Senator,

On February 7, 2024, the Senate Committee on Labor, Commerce and Industry will hold a hearing on SB910.  On behalf of the 21,216 members and supporters of the Council for Citizens Against Government Waste (CCAGW) in South Carolina, I urge you to vote against this legislation, which would effectively ban short-term lending for borrowers throughout the state.

A February 2, 2024, South Carolina Policy Council analysis of SB910 described how the bill’s loan renewal  provisions would force borrowers to juggle multiple loans, and its excessive marketing restrictions would deter lenders from doing business in the Palmetto State.  The legislation would also limit consumers’ access to financial services, especially unbanked and underbanked populations.  The bill fails to consistently apply its own restrictions by exempting banks and credit unions from the same requirements imposed on other lenders.

Instead of enacting legislation that would reduce competition and access to credit, lawmakers should focus on improving financial literacy education or developing more flexible models for new underwriting.

Short-term loans are a valuable financial tool, and South Carolina consumers deserve to be trusted to make their own decisions about when and where to borrow money.  Lenders, too, should be trusted to do their own due diligence in assessing borrowers’ ability to repay.  I urge you to oppose SB910 and refrain from impeding access to credit for those in need.

Sincerely,
Tom Schatz
President, CCAGW