Palmetto State News

Bryce Fiedler, senior policy analyst for the South Carolina Policy Council, said the council opposes a pending South Carolina bill that would limit companies from making smaller-dollar loans to consumers in the state because it would “reduce consumer options” and “harm competition.”

“Yes, the South Carolina Policy Council opposes the bill,” Fiedler told Palmetto State News. “It would make it harder for those with imperfect credit to learn about or access financial services.”

“S.910 would hinder competition in the lending sector by singling out short-term lenders while exemptions big banks and credit unions,” Fiedler said. “And it would also impose excessive and unwarranted marketing restrictions that could make doing business in South Carolina unfeasible.”

The council released an analysis of the legislation that also said the bill would “Micromanage loan renewals to the extent that borrowers in need would have to stack loans across multiple lenders.” The analysis also said S.910 would “supplant consumer decision-making with government-imposed standards.”

"These measures, though perhaps well-meaning, would limit consumers' access to credit, stifle competition in the financial industry, and create an environment that makes it difficult, if not impossible, for lenders to operate," said the council's analysis.

The bill was introduced on January 9 and is sponsored by State Sen. Tom Davis (R-Beaufort), as well as Senate Minority Leader Brad Hutto (D-Orangeburg), and Sen Deputy Minority Leader Ronnie Sabb (D-Greeleyville).

The SC State Senate Committee on Labor, Commerce, and Industry will hold a hearing on S.910 on Wednesday, February 7, 2023 at 9 a.m. in Room 307 of the Gressette Building.

The South Carolina Policy Council, established in 1986, operates as an independent, non-partisan public policy research organization. It focuses on promoting the principles of limited government, free enterprise, and individual liberty within the state of South Carolina. The council conducts research, formulates policy recommendations, and engages in public education efforts across a range of issues including taxation, education, healthcare, and government transparency. Its mission aims to influence public policy decisions and foster a more informed citizenry.