In the winter of 1999, Senator Glen McConnell conducted public hearings on Predatory Lending. Through these heartbreaking stories of predatory lending victims, the gross abuses suffered by South Carolina citizens were brought to the forefront.

On January 11, 2000, Senator Darrell Jackson introduced Senate Bill 996, the “Predatory Mortgage Loan Prevention Act.” Due to enormous opposition, this bill did not make it out of Committee. Senators Jackson and McConnell introduced Senate Resolution 1431 on June 1, 2000. This Resolution to set up a subcommittee to study and make recommendations to the Senate regarding legislation to remedy unfair predatory lending practices in South Carolina was adopted unanimously by the Senate.

On January 11, 2001, Senator Jackson and co-sponsors Senators Glover, Ford, Matthews, Patterson, and Pinckney introduced Senate Bill 122 to set up a Senate subcommittee to study predatory lending practices.

During the summer of 2001, Senator Thomas, Chairman of the Banking and Insurance Committee, formed a Predatory Lending Task Force made up of interests from all sectors to study the Predatory Lending issue and to come up with legislation that would protect South Carolina Consumers from predatory lending practices without impeding the financial market. Senator Thomas, the Senate Banking and Insurance Staff, and the various interests made up of approximately sixty persons met many times during the summer and winter of 2001. A volunteer mediator presided over the meetings.

On February 7, 2002, Senate Bill 994, sponsored by Senator Thomas and co-sponsored by Senators McConnell, J.V. Smith, Matthews, Patterson, Hayes, Jackson, Short, Ravenel, Reese, Drummond, Giese, and Rankin, received a first reading in the Senate and was referred to the Senate Banking and Insurance Committee. After the long and often heated summer negotiations, the support was not there to get this Bill out of committee.

During the summer of 2002, the Senate Banking and Insurance Committee, various consumer groups and business community continued to work toward a resolution on the Predatory Lending issue.

On January 14, 2003, Senator Thomas, with co-sponsors Senators Hayes, Ravenel, and Short introduced Senate Bill 17, a Predatory Lending bill patterned after the North Carolina Predatory Lending legislation and the AARP Model Act. A subcommittee was formed that was chaired by Senator Wes Hayes. The subcommittee members were Senators Thomas, Martin, Short, Rankin, Jackson, and Richardson. After hearing from the various interests, the subcommittee addressed some of the concerns through amendments and the Bill was reported out favorably to the Senate Banking and Insurance Committee. After debate by the full Committee, with more amendments that addressed the concerns of consumers and business, the Committee voted S17 out as a Committee Bill.

Senate bill 17 then received a new Committee bill number: Senate Bill 438. The Committee Bill received a first reading in the Senate on March 4, 2003. The Bill was amended to address various concerns by the full Senate and was sent to the House, Labor, Commerce and Industry Committee, Chaired by Representative Cato. Representative Chellis chaired the subcommittee in the House. After many committee hearings, the House amended the bill and sent it back to the Senate. The Senate refused the House amendments and a Conference Committee was appointed.

The conference committee that deliberated Senate Bill 438 was made up of 6 members: three from the senate (Senators Hayes, Short and Jackson), and three from the House of Representatives (Representatives Cato, Chellis, and Joe Neal). The organizational meeting was held on April 23, 2003. Senator Hayes was elected Chairman, with Representative Cato elected Vice-Chair. The Committee deliberated the two versions of the Bill and came up with a final piece of legislation.

On April 29, at 9. a.m. in the Gressette building, the difficult job of ‘hammering out the details’ on the House and Senate versions of the Bill, section by section, began.

Certain language from both versions of the Bill were desirable to ensure both the protection of South Carolina Consumers and the protection of the lending market. After almost two weeks or meetings and reports, the House ordered the Bill enrolled for ratification.

The Bill was ratified in the house and Senate on May 28, 2003, and signed into law by Governor Mark Sanford on June 3, 2003. The bill takes effect on January 1, 2004.

This bill was a united effort on the part of the South Carolina Legislature. At the Same time the Senate was working on the predatory lending legislation, the House began to hear testimony on a number of bills that were introduced. The House agreed to use the Seante Bill as a vehicle after it had introduced its own legislation, as an act of good faith. Represenatives Cato, Wilkins, Chellis, Clark, Edge, Clemmons, Bailey, Toole Fleming, Martin, Whipper, Joe Neal, Rhoad, Altman, Cobb-Hunter, Emory, Gilham, Kirsh, Mecham-Richardson, Riser, Rivers, Rodgers-Snow, Sheheen, Stille, Townsend, Vaughn, Weeks, Witherspoon, Clyburn, Doug Smith, Coleman and Cotty sponsored various Predatory lending bills in the House of Representatives.

The ultimate goal of both the House and Senate is to protect our citizens from the abusive practices that are currently not illegal in our state. The South Carolina Department of Consumer Affairs is also taking care of South Carolina businesses by protecting its citizens. Businesses employ consumers, and satisfied consumers make good workers and repeat consumers. When South Carolina citizens and consumers are safe from victimization from predatory lenders, everyone wins.