State Representative Michael Thompson

Posted by Online-Payday-Loans.org on Apr 13, 2007 in Quotes

“These things (payday loans) were never supposed to be a permanent fix in someone’s financial world… These were supposed to be a temporary fix for someone’s financial situation.”

State Representative Michael Thompson believes that it is not payday loan fees that drive people into debt but the number of loans taken out at any one time…

Instead of capping interest rates, Thompson proposed a payday loan bill that would:

  • limit a consumer to no more than $300 in 60 days
  • limit a consumer to no more than 6 payday loans per year
  • force lenders to grant consumers a 6 month grace period with no charge
  • force lenders to offer consumers repayment plans if they cannot repay their loan immediately

The bill would include provisions for a statewide database to track loans and the cost of maintaining this database would be covered by a fee of up to $1 per loan.

Payday loan companies that do not comply with these provisions:

  • could face a $2500 fine per location on their first offense
  • could have their license revoked for 2 years on their second offense

State Representative Michael Thompson represents the Anderson district and is assigned to the Labor, Commerce and Industry Committee.

Sources:
State Rep. Michael Thompson Looks to Limit Payday Loans per Customer by Heidi Cenac (Anderson Independent Mail)
South Carolina Legislature Online

Borrower databases punish responsible borrowers by increasing loan costs and reducing privacy. For details, please read Five Payday Loan Laws that Hurt Consumers.

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