The South Carolina Department of Consumer Affairs recently announced changes in dollar amounts pursuant to Sections 37-1-109 and 37-6-104(1)(e) which provide that dollar amounts in the Consumer Protection Code are subject to change on July 1 of every even-numbered year based on changes in the Consumer Price Index for December of the preceding year. The adjusted dollar amounts are effective July 1, 2020 through June 30, 2022.
In addition to other impacts, the adjustments affect delinquency charges for consumer loans, such as subordinate-lien mortgage loans. The minimum late fee that a lender may impose on a borrower in South Carolina will be increased from $7.40 to $8.40. The maximum amount a lender may charge will increase from $18.50 to $21.00.
Under Sections 37-10-103 and 37-23-80, South Carolina is significantly increasing the threshold loan amount for which a prepayment penalty may be charged from $270,000 to $630,000.
In response to these changes, the DocMagic system and Late Fee Matrix will be updated on July 1, 2020. If you should have questions, please contact DocMagic’s Compliance Department.
For a detailed list of dollar amount adjustments, please click here.
