S.C. Code Regs. § § 28-70-2.305, 3.305

Current through Register Vol. 48, No. 10, October 25, 2024

Section 28-70-2.305, 3.305 - Filing and Posting Maximum Rate Schedules

A. Every creditor [Section 37-1-301(13) ] other than an assignee of a credit obligation making consumer credit sales [Section 37-2-104 ] in this State, and intending to impose a credit service charge in excess of 18% per annum in this State, and every creditor [Section 37-1-301(13) ] making supervised loans [Section 37-3-501(1) ] or restricted loans [Section 37-3-501(3) ] in this State, shall on or before July 1, 1982 file with the Department of Consumer Affairs a rate schedule typed upon Appendix A, prepared in the format shown in Appendix B. The original of the rate schedule shall be filed with two copies, which may be legible photostatic copies of the completed Appendix A, together with a fee of $10.00 for each rate schedule filed. If a creditor is not making such loans or credit sales on July 1, 1982, the filing shall be made at least seven days before the creditor begins to make such loans or credit sales.

B. Every creditor [Section 37-1-301(13) ] other than an assignee of a credit obligation, making consumer credit sales [Section 37-2-104 ] and intending to impose a credit service charge in excess of 18% per annum in this State, and every creditor [Section 37-1-301(13) ] making supervised loans [Section 37-3-501(1) ] or restricted loans [Section 37-3-501(3) ] in this State, shall on or before July 1, 1982 post in one conspicuous place in every place of business in this State in which offers to make consumer credit sales, supervised loans or restricted loans are extended, a maximum rate schedule with rates that are identical to those listed in the rate schedule filed with the Department of Consumer Affairs pursuant to Section A. The posted rate schedule shall be reproduced in at least fourteen-point type, and the terms "credit service charge," or "loan finance charge" and "annual percentage rate" will be printed in larger size type than other terms in the posted rate schedule.

A creditor that has issued seller credit cards [Section 37-1-301(26) ] or a creditor that has issued lender credit cards or similar arrangements [Section 37-1-301(16) ] shall not be required to post a required rate schedule for such transactions in any place of business which is authorized to honor such transactions; provided that the creditor shall include a conspicuous statement of the maximum rate it intends to charge for these transactions in the initial disclosure statement required to be provided for the debtor by the Federal Truth-In-Lending Act and notifies the debtor of any change in the maximum rate on or before the effective date of the change; provided further that a creditor that has issued lender credit cards or similar arrangements shall nevertheless post the required rate schedule for such transactions at its central office (if financial transactions with consumers take place at the central office) and branch offices other than branch offices which are free standing automatic teller machines.

In the case of a creditor not making such loans or credit sales on July 1, 1982, a schedule shall be posted on or before the date the creditor begins to make such loans or credit sales.

Creditors offering to make consumer credit sales shall include the following statement in the posted rate schedule:

Consumers: All creditors making consumer credit sales in South Carolina are required by law to post a schedule showing the maximum rate of CREDIT SERVICE CHARGES expressed as the FINANCE CHARGE stated as ANNUAL PERCENTAGE RATES that the creditor intends to charge for various types of consumer credit transactions. The purpose of this requirement is to assist you in comparing the maximum rates that creditors charge, thereby furthering your understanding of the terms of consumer credit transactions and helping you to avoid the uninformed use of credit.

NOTE: Creditors are prohibited only from granting consumer credit at rates higher than those specified above. A creditor may be willing to grant you credit at rates that are lower than those specified, depending on the amount, terms, collateral and your credit worthiness.

Creditors offering to make supervised loans or restricted loans shall include the following statement in the posted rate schedule:

Consumers: All supervised and restricted creditors making consumer loans in South Carolina are required by law to post a schedule showing the maximum rate of LOAN FINANCE CHARGES stated as ANNUAL PERCENTAGE RATES that the creditor intends to charge for various types of consumer credit transactions. The purpose of this requirement is to assist you in comparing the maximum rates that creditors charge, thereby furthering your understanding of the terms of consumer credit transactions and helping you to avoid the uninformed use of credit.

With the exception of the two statements set forth above (which must be printed verbatim), the creditor is free to develop a format for the posted rate schedule, so long as the requirements of conspicuousness, type size and terminology of Section 37-2-305, Section 37-3-305 and this Regulation are met. No posted rate schedule shall contain any statement, stamp of approval, or any language or symbol which suggests or implies that the posted rate(s) are suggested, or individually approved by the Department of Consumer Affairs or any other agency of State or Federal government.

C. The rate schedule required to be filed and posted by Sections A. and B. shall contain a list of the maximum credit service charges [Section 37-2-109 ] (in the case of consumer credit sales) or maximum loan finance charges [Section 37-3-109 ] (in the case of supervised or restricted consumer loans) stated as an annual percentage rate, determined in accordance with the Federal Truth-In-Lending Act as amended from time to time, and Federal Reserve Board Regulation Z as amended from time to time, that the creditor intends to charge for consumer credit transactions in each of the following categories of consumer credit:

(a) Unsecured credit sales or loans;

(b) Secured credit sales or personal loans, other than those secured by real estate;

(c) Credit sales secured by real estate or real estate mortgage loans;

(d) Open-end (revolving) credit;

(e) All other

The creditor may include as many subcategories as it chooses under each of the specified categories in accordance with the instructions on the reverse side of Appendix A.

If a creditor with multiple locations wishes to charge different maximum rates for different locations, a separate maximum rate schedule shall be filed for each location which charges maximum rates which vary from the schedule filed and posted for the main or central location.

D. A rate schedule filed shall be effective for all consumer credit extended after the close of business on the day the certified schedule is received by the creditor or seven days after the date of submission postmark, whichever is earlier; provided, however, that certification by the Department of Consumer Affairs shall not make any maximum rate schedule effective where the creditor has not otherwise complied with Section 37-2-305, Section 37-3-305 and this Regulation, and such noncompliance is not apparent on the face of the certified rate schedule filed with the Department. An example of such noncompliance would be the posting of a schedule of rates which are lower than the actual maximum rates charged.

E. A rate schedule filed and posted as required by Section 37-2-305, Section 37-3-305, and this Regulation shall remain effective until changed in accordance with Section 37-2-305, Section 37-3-305 and this Regulation. A creditor wishing to change any of the maximum rates shown on a schedule previously filed and posted or to add or delete the prescribed categories or subcategories shall file with the Department of Consumer Affairs a revised schedule on Appendix A, with two copies, which may be legible photostatic copies of the completed Appendix A, together with a fee of $10.00 for each rate schedule filed.

F. The Department of Consumer Affairs shall maintain a file for each creditor containing the original and all revised schedules filed by the creditor. A certified copy of each filing showing the date and time that it was received shall be sent to the creditor making the filing at the time of its receipt. A fee of $10.00 for each rate schedule filed by a creditor shall be payable to the Department of Consumer Affairs for its services in maintaining the rate schedule files and providing one certified copy of each rate filing to the creditor. Additional certified copies of a filing shall be provided at a charge of $4.00 per copy.

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S.C. Code Regs. § 28-70-2.305, 3.305

Added by State Register Volume 7, Issue No. 5, eff May 27, 1983.